Mortgage Rates Increase

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has released its latest Primary Mortgage Market Survey (PMMS) results, indicating an increase in mortgage rates. As of July 3, 2024, the 30-year fixed-rate mortgage (FRM) averaged 6.95%, up from 6.86% last week and 6.81% a year ago. The 15-year FRM averaged 6.25%, a slight rise from 6.16% last week and nearly unchanged from 6.24% a year ago. Chief Economist Sam Khater noted that both new and pending home sales are down, leading to an increase in active listings. However, he expects rates to moderately decrease in the second half of the year, which, coupled with increased inventory, should temper price growth, benefiting potential homebuyers.

Positive

• Expectations of moderate rate decreases in the second half of the year may benefit homebuyers.
• Increased inventory anticipated to temper price growth, making homes more affordable.

Negative

• 30-year FRM increased to 6.95%, up from 6.86% last week and 6.81% a year ago.
• Both new home and pending home sales are down, leading to increased active listings.

MCLEAN, Va., July 03, 2024 (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 6.95 percent. This week’s results include an adjustment for the observance of Independence Day.

“Mortgage rates increased this week, coming in just under seven percent,” said Sam Khater, Freddie Mac’s Chief Economist. “Both new home and pending home sales are down, causing active listings to rise. We are still expecting rates to moderately decrease in the second half of the year and given additional inventory, price growth should temper, boding well for interested homebuyers.”

News Facts

• The 30-year FRM averaged 6.95 percent as of July 3, 2024, up from last week when it averaged 6.86 percent. A year ago at this time, the 30-year FRM averaged 6.81 percent.
• The 15-year FRM averaged 6.25 percent, up from last week when it averaged 6.16 percent. A year ago at this time, the 15-year FRM averaged 6.24 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/b5ac8e07-2dba-4be0-963b-b71770540a8e

FAQ

What is the current 30-year fixed-rate mortgage (FRM) according to Freddie Mac?

As of July 3, 2024, the 30-year fixed-rate mortgage (FRM) averaged 6.95%, up from 6.86% last week.

How does the current 30-year FRM compare to last year?

The 30-year FRM is 6.95% as of July 3, 2024, compared to 6.81% at the same time last year.

What is the current rate for a 15-year fixed-rate mortgage (FRM)?

The 15-year FRM averaged 6.25% as of July 3, 2024, up from 6.16% last week and nearly unchanged from 6.24% a year ago.

How have new and pending home sales been affected by the recent mortgage rate changes?

Both new and pending home sales are down, leading to an increase in active listings.

What are Freddie Mac's expectations for mortgage rates in the second half of the year?

Freddie Mac expects mortgage rates to moderately decrease in the second half of the year.

What impact is the increased inventory expected to have on home prices?

The increased inventory is expected to temper price growth, making homes more affordable for buyers.