Mortgage Rates Revert from Last Week
Freddie Mac (OTCQB: FMCC) reported that the average rate for a 30-year fixed mortgage is 5.13% as of August 18, 2022, down from 5.22% the prior week but significantly higher than 2.86% a year ago. The 15-year fixed mortgage rate is now 4.55%, and the 5-year adjustable-rate mortgage averages 4.39%. Chief Economist Sam Khater noted that inflation has peaked, halting rapid mortgage rate increases, although affordability remains challenged, leading to lower purchase demand and decelerating home price growth.
- Mortgage rates have decreased slightly, with the 30-year fixed-rate mortgage dropping to 5.13%, down from 5.22%.
- The current average for the 30-year fixed-rate mortgage is significantly higher than the 2.86% rate a year ago.
- High inflation has impacted affordability, causing a decline in purchase demand.
- Home price growth is expected to decelerate due to decreased purchase demand.
MCLEAN, Va., Aug. 18, 2022 (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 5.13 percent.
“Inflation appears to be beyond its peak, which has stopped the rapid increase in mortgage rates that the housing market was experiencing earlier this year,” said Sam Khater, Freddie Mac’s Chief Economist. “The market continues to absorb the cumulative impact of the large price and rate increases that led to a plunge in affordability. As a result, over the rest of the year purchase demand likely will continue to drag, supply will modestly increase, and home price growth will decelerate.”
News Facts
- 30-year fixed-rate mortgage averaged 5.13 percent with an average 0.8 point as of August 18, 2022, down from last week when it averaged 5.22 percent. A year ago at this time, the 30-year FRM averaged 2.86 percent.
- 15-year fixed-rate mortgage averaged 4.55 percent with an average 0.7 point, down from last week when it averaged 4.59 percent. A year ago at this time, the 15-year FRM averaged 2.16 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.39 percent with an average 0.3 point, down from last week when it averaged 4.43 percent. A year ago at this time, the 5-year ARM averaged 2.43 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/25ddebac-748b-4fe6-bd4a-38cd9f9719c6
FAQ
What is the current average rate for the 30-year fixed mortgage according to Freddie Mac's August 2022 report?
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