Mortgage Rates Rise Above Three Percent
Freddie Mac (OTCQB: FMCC) reported a rise in the 30-year fixed-rate mortgage average to 3.02% for the week ending June 24, 2021, up from 2.93% the previous week. This represents the first time rates have exceeded 3% in ten weeks. The 15-year fixed-rate mortgage rose to 2.34%, while the 5-year ARM slightly increased to 2.53%. Chief Economist Sam Khater indicated that rising rates are expected to continue as the economy improves and inflation persists. Homeowners are encouraged to refinance before rates rise further.
- The 30-year fixed-rate mortgage rose to 3.02%, indicating increasing demand for mortgages.
- The rise in mortgage rates may lead to more refinancing opportunities for homeowners.
- The increase in mortgage rates could deter potential homebuyers and slow down housing market activity.
MCLEAN, Va., June 24, 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 3.02 percent.
“Mortgage rates have risen above three percent for the first time in ten weeks,” said Sam Khater, Freddie Mac’s Chief Economist. “As the economy progresses and inflation remains elevated, we expect that rates will continue to gradually rise in the second half of the year. For those homeowners who have not yet refinanced – and there remain many borrowers who could benefit from doing so – now is the time.”
News Facts
- 30-year fixed-rate mortgage averaged 3.02 percent with an average 0.7 point for the week ending June 24, 2021, up from last week when it averaged 2.93 percent. A year ago at this time, the 30-year FRM averaged 3.13 percent.
- 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.7 point, up from last week when it averaged 2.24 percent. A year ago at this time, the 15-year FRM averaged 2.59 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.53 percent with an average 0.3 point, up slightly from last week when it averaged 2.52 percent. A year ago at this time, the 5-year ARM averaged 3.08 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/d3947376-3ab3-4ad6-a775-9e9721b192a8
FAQ
What is the current average rate for a 30-year fixed-rate mortgage from Freddie Mac (FMCC)?
How has Freddie Mac's mortgage rate changed compared to last week?
What does the increase in mortgage rates indicate for the housing market?
What is the average rate for a 15-year fixed-rate mortgage from Freddie Mac (FMCC)?
What are the implications of rising mortgage rates for homeowners?
