Mortgage Rates Tick Up

Rhea-AI Summary

On November 18, 2021, Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, revealing that the 30-year fixed-rate mortgage averaged 3.10%, up from 2.98% the previous week, and 2.72% a year ago. The 15-year fixed-rate mortgage rose to 2.39% from 2.27% last week, while the 5-year ARM decreased slightly to 2.49%. Chief Economist Sam Khater indicated that rising inflation and consumer spending are driving mortgage rates higher, indicating a challenging housing market due to strong demand amid inventory shortages.

Positive

• 30-year fixed-rate mortgage increased to 3.10%, indicating improving demand for home purchases.
• 15-year fixed-rate mortgage also saw an increase, suggesting stronger borrower confidence.

Negative

• Ongoing inventory shortages and rising home prices may hinder market growth.
• Increasing mortgage rates might limit affordability for potential homebuyers.

MCLEAN, Va., Nov. 18, 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 3.10 percent.

“The combination of rising inflation and consumer spending is driving mortgage rates higher,” said Sam Khater, Freddie Mac’s Chief Economist. “Shoppers looking to buy a home are fueling strong demand while ongoing inventory shortages are not improving in the presence of higher home prices. This reality illustrates the challenging situation facing the housing market.”

News Facts

• 30-year fixed-rate mortgage averaged 3.10 percent with an average 0.7 point for the week ending November 18, 2021, up from last week when it averaged 2.98 percent. A year ago at this time, the 30-year FRM averaged 2.72 percent.
• 15-year fixed-rate mortgage averaged 2.39 percent with an average 0.6 point, up from last week when it averaged 2.27 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 2.49 percent with an average 0.3 point, down from last week when it averaged 2.53 percent. A year ago at this time, the 5-year ARM averaged 2.85 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/d828d643-b4ef-45a1-aac8-84df56cdddc0

FAQ

What is the current average rate for a 30-year fixed-rate mortgage as of November 18, 2021?

The average rate for a 30-year fixed-rate mortgage is 3.10%.

How did mortgage rates change from last week to November 18, 2021?

The 30-year fixed-rate mortgage increased from 2.98% to 3.10%.

What factors are contributing to the rise in mortgage rates according to Freddie Mac?

Rising inflation and increased consumer spending are driving mortgage rates higher.

What was the rate for a 15-year fixed-rate mortgage reported by Freddie Mac?

The 15-year fixed-rate mortgage averaged 2.39%.

How does the current mortgage rate compare to last year?

A year ago, the 30-year fixed-rate mortgage averaged 2.72%.