Mortgage Rates Tick Down

Rhea-AI Summary

Freddie Mac reports that the 30-year fixed-rate mortgage averaged 6.39 percent, slightly down from last week. Despite the rates, the residential housing market remains busy with interested homebuyers, although the lack of inventory is a challenge to affordability.

Positive

• The 30-year fixed-rate mortgage decreased slightly to 6.39 percent from last week's 6.43 percent, which could positively affect the housing market and attract more buyers.

Negative

• The lack of inventory in the housing market remains a primary obstacle to affordability, which could negatively impact the market.

MCLEAN, Va., May 04, 2023 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.39 percent.

“This week, mortgage rates inched down slightly amid recent volatility in the banking sector and commentary from the Federal Reserve on its policy outlook,” said Sam Khater, Freddie Mac’s Chief Economist. “Spring is typically the busiest season for the residential housing market and, despite rates hovering in the mid-six percent range, this year is no different. Interested homebuyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability.”

News Facts

• 30-year fixed-rate mortgage averaged 6.39 percent as of May 4, 2023, down from last week when it averaged 6.43 percent. A year ago at this time, the 30-year FRM averaged 5.27 percent.
• 15-year fixed-rate mortgage averaged 5.76 percent, up from last week when it averaged 5.71 percent. A year ago at this time, the 15-year FRM averaged 4.52 percent.

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/78de9177-c88d-466b-9f8d-98b66aa20405

 

FAQ

What is the current average rate for a 30-year fixed-rate mortgage?

As of May 4, 2023, the average rate for a 30-year fixed-rate mortgage is 6.39 percent.

How does the current rate compare to last week?

The current rate of 6.39 percent is slightly lower than last week's rate of 6.43 percent.

What is the main challenge to affordability in the housing market?

The lack of inventory remains a primary obstacle to affordability in the housing market.

What is Freddie Mac's mission?

Freddie Mac's mission is to make home possible for families across the nation by promoting liquidity, stability, affordability, and equity in the housing market throughout all economic cycles.