Mortgage Rates Resume Their Climb

Rhea-AI Summary

On October 13, 2022, Freddie Mac (OTCQB: FMCC) reported an increase in the average rates for 30-year fixed-rate mortgages, hitting 6.92%, the highest since April 2002. The 15-year fixed-rate mortgage also rose to 6.09%, while the 5-year ARM increased to 5.81%. Strong job growth contrasts with inflation and housing affordability concerns, significantly impacting housing demand. Freddie Mac plans to enhance its Primary Mortgage Market Survey (PMMS) starting November 2022, shifting data collection methods to improve accuracy.

Positive

• Freddie Mac's PMMS reveals increased mortgage rates, indicating a potential rise in lender confidence.
• The shift in mortgage survey data collection could enhance the accuracy and reliability of market insights.

Negative

• The 30-year fixed-rate mortgage hit 6.92%, potentially discouraging homebuyers amidst affordability issues.
• Inflation and recession fears are driving housing demand down significantly.

MCLEAN, Va., Oct. 13, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.92 percent.

“Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002,” said Sam Khater, Freddie Mac’s Chief Economist. “We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important for the economy and the housing market.”

News Facts

• 30-year fixed-rate mortgage averaged 6.92 percent with an average 0.8 point as of October 13, 2022, up from last week when it averaged 6.66 percent. A year ago at this time, the 30-year FRM averaged 3.05 percent.
• 15-year fixed-rate mortgage averaged 6.09 percent with an average 1.1 point, up from last week when it averaged 5.90 percent. A year ago at this time, the 15-year FRM averaged 2.30 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.81 percent with an average 0.2 point, up from last week when it averaged 5.36 percent. A year ago at this time, the 5-year ARM averaged 2.55 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.

NOTE: Freddie Mac is making a number of enhancements to the PMMS to improve the collection, quality and diversity of data used. Instead of surveying lenders, the weekly results will be based on applications received from thousands of lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. Additionally, we will no longer publish fees/points or adjustable rates. The newly recast PMMS will be put in place in November 2022, and the weekly distribution will be Thursdays at 12 p.m. noon ET.

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/bcd7be22-ecdb-4c58-9880-4b18301a34cb

FAQ

What is the current average rate for a 30-year fixed-rate mortgage as of October 2022 for FMCC?

The average rate for a 30-year fixed-rate mortgage is 6.92% as of October 13, 2022.

How will Freddie Mac's PMMS change in November 2022?

Freddie Mac will enhance the PMMS by basing results on applications submitted from thousands of lenders instead of surveying lenders.

What other mortgage rates are reported by Freddie Mac in October 2022?

As of October 2022, the 15-year fixed-rate mortgage averaged 6.09%, and the 5-year ARM averaged 5.81%.

What economic factors are impacting the housing market according to Freddie Mac?

Freddie Mac noted strong job growth alongside inflation and recession fears, which are negatively affecting housing demand.

When is the release date for the updated PMMS data collection method?

The updated PMMS will be implemented in November 2022.