Mortgage Rates Rise for the Sixth Consecutive Week

Rhea-AI Summary

Freddie Mac (FMCC) announced on September 29, 2022, that the average rate for a 30-year fixed-rate mortgage rose to 6.70%, an increase from 6.29% the previous week and significantly higher than 3.01% a year ago. The 15-year fixed-rate mortgage also saw a rise, averaging 5.96%, up from 5.44%. Additionally, the 5-year ARM increased to 5.30%. This volatility emphasizes the importance for homebuyers to compare rates among lenders. Freddie Mac will adjust its PMMS methodology in November 2022 to enhance data quality, focusing on applications from various lenders.

Positive

• Freddie Mac's PMMS shows a rise in mortgage rates indicating a robust demand for mortgage capital.
• Upcoming enhancements to the PMMS by collecting data from thousands of lenders may improve the accuracy and diversity of mortgage rate reporting.

Negative

• The significant increase in mortgage rates could deter potential homebuyers, impacting overall housing market activity.
• The fluctuation in rates has created uncertainty, making it difficult for borrowers to secure predictable mortgage financing.

MCLEAN, Va., Sept. 29, 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 6.70 percent.

“The uncertainty and volatility in financial markets is heavily impacting mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year. This means that for the typical mortgage amount, a borrower who locked-in at the higher end of the range would pay several hundred dollars more than a borrower who locked-in at the lower end of the range.”

Khater continued, “The large dispersion in rates means it has become even more important for homebuyers to shop around with different lenders.”

News Facts

• 30-year fixed-rate mortgage averaged 6.70 percent with an average 0.9 point as of September 29, 2022, up from last week when it averaged 6.29 percent. A year ago at this time, the 30-year FRM averaged 3.01 percent.
• 15-year fixed-rate mortgage averaged 5.96 percent with an average 1.3 point, up from last week when it averaged 5.44 percent. A year ago at this time, the 15-year FRM averaged 2.28 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.30 percent with an average 0.4 point, up from last week when it averaged 4.97 percent. A year ago at this time, the 5-year ARM averaged 2.48 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/15f46500-96cf-4215-9da3-45f13c1f3bcc

FAQ

What is the latest average mortgage rate published by Freddie Mac for FMCC?

As of September 29, 2022, the average rate for a 30-year fixed-rate mortgage is 6.70%.

How have mortgage rates changed recently for FMCC?

Mortgage rates have increased significantly, with the 30-year FRM rising from 6.29% the previous week and 3.01% a year ago.

When will Freddie Mac implement changes to the PMMS?

Freddie Mac will implement changes to the PMMS methodology in November 2022.

What should homebuyers consider in light of the recent rate increases reported by FMCC?

Homebuyers should shop around with different lenders due to the large dispersion in mortgage rates.