Mortgage Rates Surge on Inflation Expectations
On June 16, 2022, Freddie Mac reported that the average rate for the 30-year fixed-rate mortgage surged to 5.78%, marking a significant rise from 5.23% the previous week, and 2.93% a year ago. This increase of more than half a percentage point is the largest weekly jump since 1987, driven by changing inflation expectations and monetary policy shifts. The average 15-year fixed-rate mortgage also rose to 4.81%, and the 5-year ARM increased to 4.33%. These increased rates are expected to moderate housing activity as the market stabilizes.
- None.
- Surge in mortgage rates may lead to reduced housing activity and buyer affordability.
- The 30-year fixed-rate mortgage saw the largest weekly increase since 1987.
MCLEAN, Va., June 16, 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 5.78 percent.
“Mortgage rates surged as the 30-year fixed-rate mortgage moved up more than half a percentage point, marking the largest one-week increase in our survey since 1987,” said Sam Khater, Freddie Mac’s Chief Economist. “These higher rates are the result of a shift in expectations about inflation and the course of monetary policy. Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”
News Facts
- 30-year fixed-rate mortgage averaged 5.78 percent with an average 0.9 point as of June 16, 2022, up from last week when it averaged 5.23 percent. A year ago at this time, the 30-year FRM averaged 2.93 percent.
- 15-year fixed-rate mortgage averaged 4.81 percent with an average 0.9 point, up from last week when it averaged 4.38 percent. A year ago at this time, the 15-year FRM averaged 2.24 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.33 percent with an average 0.3 point, up from last week when it averaged 4.12 percent. A year ago at this time, the 5-year ARM averaged 2.52 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:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e07b1235-4be3-4338-b6b0-6db6a6513e0e
FAQ
What was the average rate for the 30-year fixed-rate mortgage on June 16, 2022?
How much did mortgage rates increase recently according to Freddie Mac?
What were the average rates for the 15-year fixed-rate mortgage and 5-year ARM as of June 16, 2022?
What factors contributed to the surge in mortgage rates according to Freddie Mac?
How do rising mortgage rates affect the housing market?
