Mortgage Rates Move Up for the First Time in Weeks

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the latest results of its Primary Mortgage Market Survey (PMMS) on August 12, 2021. The survey indicated that the 30-year fixed-rate mortgage averaged 2.87 percent, rising from 2.77 percent the previous week. Additionally, the 15-year fixed-rate mortgage increased to 2.15 percent, while the 5-year Treasury-indexed hybrid ARM rose to 2.44 percent. Despite the recent uptick in rates, they remain low amidst strong economic growth and job gains.

Positive

• 30-year fixed-rate mortgage increased to 2.87%, indicating a stable demand for housing.
• Strong economic growth and job gains could support continued demand for mortgages.

Negative

• Recent increase in mortgage rates may deter potential homebuyers.

MCLEAN, Va., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.87 percent.

“Following last Friday’s strong jobs report, which revealed broad based gains in employment and wage growth, mortgage rates are moving higher,” said Sam Khater, Freddie Mac’s Chief Economist. “After dropping for six consecutive weeks, the 30-year fixed-rate mortgage increased by ten basis points week over week. Despite the rise, rates remain very low, particularly given that economic growth is strong and will continue into next year.”

News Facts

• 30-year fixed-rate mortgage averaged 2.87 percent with an average 0.7 point for the week ending August 12, 2021, up from last week when it averaged 2.77 percent. A year ago at this time, the 30-year FRM averaged 2.96 percent.
• 15-year fixed-rate mortgage averaged 2.15 percent with an average 0.7 point, up from last week when it averaged 2.10 percent. A year ago at this time, the 15-year FRM averaged 2.46 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.44 percent with an average 0.3 point, up from last week when it averaged 2.40 percent. A year ago at this time, the 5-year ARM averaged 2.90 percent.
  

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b083c963-cce4-4185-a396-ba13cff55701

FAQ

What is the current mortgage rate reported by Freddie Mac for August 2021?

As of August 12, 2021, the 30-year fixed-rate mortgage averaged 2.87 percent.

How has the 30-year fixed-rate mortgage changed from last week?

The 30-year fixed-rate mortgage rose from 2.77 percent last week.

What impact does strong job growth have on mortgage rates?

Strong job growth contributes to higher mortgage rates, as reported by Freddie Mac.

What were the rates for the 15-year and 5-year ARMs reported by Freddie Mac?

The 15-year fixed-rate mortgage averaged 2.15 percent, and the 5-year ARM averaged 2.44 percent.