Mortgage Rates Trend Up

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported in its latest Primary Mortgage Market Survey that the 30-year fixed-rate mortgage averaged 6.50% as of February 23, 2023. This is an increase from 6.32% the previous week and significantly higher than the 3.89% average from a year ago. Similarly, the 15-year fixed-rate mortgage rose to 5.76% from 5.51% last week, up from 3.14% a year prior. Sam Khater, Chief Economist at Freddie Mac, indicated that a robust economy and rising interest rates could lead to homebuyers saving between $600 to $1,200 annually by shopping for better rates.

Positive

• 30-year fixed-rate mortgage increased to 6.50%, indicating a strong upward trend.
• Potential for homebuyers to save $600 to $1,200 by comparing lender rates.

Negative

• Interest rates rising may deter potential homebuyers.
• 30-year FRM has more than doubled compared to the average of 3.89% a year ago.

MCLEAN, Va., Feb. 23, 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 6.50 percent.

“The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation,” said Sam Khater, Freddie Mac’s Chief Economist. "Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually by taking the time to shop among lenders to find a better rate.”

News Facts

• 30-year fixed-rate mortgage averaged 6.50 percent as of February 23, 2023, up from last week when it averaged 6.32 percent. A year ago at this time, the 30-year FRM averaged 3.89 percent.
• 15-year fixed-rate mortgage averaged 5.76 percent, up from last week when it averaged 5.51 percent. A year ago at this time, the 15-year FRM averaged 3.14 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 photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/109e5ad5-b86d-4012-8674-0e6cf1568721

FAQ

What is the current average for the 30-year fixed-rate mortgage as of February 23, 2023?

As of February 23, 2023, the average for the 30-year fixed-rate mortgage is 6.50%.

How much did the 30-year fixed-rate mortgage increase from the previous week?

The 30-year fixed-rate mortgage increased from 6.32% the previous week to 6.50%.

What was the average 15-year fixed-rate mortgage as of February 23, 2023?

The average 15-year fixed-rate mortgage as of February 23, 2023, is 5.76%.

How much can homebuyers potentially save by shopping for better mortgage rates?

Homebuyers can potentially save between $600 to $1,200 annually by comparing rates.

What factors have contributed to the increase in mortgage rates?

The increase in mortgage rates is attributed to stronger than expected economic growth and inflation concerns.