Mortgage Rates Show Little Change
Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey for the week ending September 23, 2021. The 30-year fixed-rate mortgage averaged 2.88%, a slight increase from last week’s 2.86%. The 15-year fixed-rate mortgage rose to 2.15% from 2.12%, while the 5-year adjustable-rate mortgage decreased to 2.43%. Chief Economist Sam Khater noted that foreign investments in U.S. Treasuries have stabilized mortgage rates amid global economic slowdown. However, home supply is expected to tighten due to labor and material shortages.
- 30-year fixed-rate mortgage increased slightly to 2.88%.
- Homebuyer activity remains strong with improved inventory.
- Foreign investment in U.S. Treasuries supports mortgage rate stability.
- Labor and material shortages may reduce home supply.
MCLEAN, Va., Sept. 23, 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 2.88 percent.
“The slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets,” said Sam Khater, Freddie Mac’s Chief Economist. “This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place, despite the increasing dispersion of inflation across different consumer goods and services."
Khater continued, “On the housing front, homebuyers continue to snap up available inventory, which has improved modestly, and home price growth is moderating. However, the next few months will be choppy as several home builders are signaling that they are going to deliver less supply amid labor and materials shortages.”
News Facts
- 30-year fixed-rate mortgage averaged 2.88 percent with an average 0.7 point for the week ending September 23, 2021, up slightly from last week when it averaged 2.86 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent.
- 15-year fixed-rate mortgage averaged 2.15 percent with an average 0.6 point, up from last week when it averaged 2.12 percent. A year ago at this time, the 15-year FRM averaged 2.40 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.43 percent with an average 0.3 point, down from last week when it averaged 2.51 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dd800604-ebde-4780-9bf4-d74ca68cd595
MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com
FAQ
What is the current 30-year fixed-rate mortgage rate for FMCC?
How does the current mortgage rate compare to last year for FMCC?
What are the implications of foreign investment for FMCC?
What challenges are homebuilders facing according to the FMCC PR?
