Mortgage Rates Drop

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey on July 7, 2022. The 30-year fixed-rate mortgage (FRM) averaged 5.30%, down from 5.70% the previous week and significantly higher than 2.90% a year ago. The 15-year FRM averaged 4.45%, also lower from last week and up from 2.20% a year ago. The 5-year hybrid adjustable-rate mortgage (ARM) averaged 4.19%. Chief Economist Sam Khater noted that the decline is minor relief for buyers amidst rising recession concerns. The housing market is projected to normalize due to low affordability and an anticipated economic slowdown.

Positive

• 30-year FRM decreased to 5.30%, providing minor relief to buyers amidst recession fears.
• 15-year FRM decreased to 4.45%, showing a positive trend for borrowers.

Negative

• Housing market normalization expected due to low affordability and economic slowdown concerns.

MCLEAN, Va., July 07, 2022 (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 5.30 percent.

“Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.”

News Facts

• 30-year fixed-rate mortgage averaged 5.30 percent with an average 0.8 point as of July 7, 2022, down from last week when it averaged 5.70 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent.
• 15-year fixed-rate mortgage averaged 4.45 percent with an average 0.8 point, down from last week when it averaged 4.83 percent. A year ago at this time, the 15-year FRM averaged 2.20 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.19 percent with an average 0.4 point, down from last week when it averaged 4.50 percent. A year ago at this time, the 5-year ARM averaged 2.52 percent.
  

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. 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/77fcd99c-5e44-4408-8569-aca1beb89bc5

FAQ

What was the average 30-year fixed-rate mortgage according to FMCC's latest report?

The average 30-year fixed-rate mortgage was 5.30%.

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

The 30-year mortgage rate dropped by half a percent from 5.70%.

What are the recent trends in the 15-year fixed-rate mortgage rates?

The 15-year fixed-rate mortgage averaged 4.45%, down from 4.83% last week.

What economic factors are affecting mortgage rates according to FMCC?

Concerns about a potential recession and low housing affordability are affecting mortgage rates.