Mortgage Rates Surpass Three Percent
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 3.05% for the week ending October 14, 2021, up from 2.99% the previous week and 2.81% a year ago. The 15-year FRM averaged 2.30%, while the 5-year ARM rose to 2.55%. Chief Economist Sam Khater noted that rising mortgage rates, alongside increasing home prices, are creating affordability challenges for potential buyers. The survey indicates that despite historically low rates, many are hesitant to enter the market due to high prices.
- 30-year fixed-rate mortgage increased to 3.05%, indicating market activity.
- Despite the rise, mortgage rates remain historically low.
- Affordability challenges due to rising mortgage rates and home prices.
- Potential homebuyers are hesitant to enter the market.
MCLEAN, Va., Oct. 14, 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 3.05 percent.
“The 30-year fixed-rate mortgage rose to its highest point since April,” said Sam Khater, Freddie Mac’s Chief Economist. “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing.”
Khater continued, “Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.”
News Facts
- 30-year fixed-rate mortgage averaged 3.05 percent with an average 0.7 point for the week ending October 14, 2021, up from last week when it averaged 2.99 percent. A year ago at this time, the 30-year FRM averaged 2.81 percent.
- 15-year fixed-rate mortgage averaged 2.30 percent with an average 0.7 point, up from last week when it averaged 2.23 percent. A year ago at this time, the 15-year FRM averaged 2.35 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.55 percent with an average 0.2 point, up from last week when it averaged 2.52 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.
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/f7a24422-a528-48fa-a84a-da4608edbf9b
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