Mortgage Rates Increase

Rhea-AI Summary

On August 25, 2022, Freddie Mac (OTCQB: FMCC) reported that the average rate for a 30-year fixed mortgage rose to 5.55%, increasing from 5.13% the previous week and significantly up from 2.87% a year ago. The 15-year fixed-rate mortgage also saw an increase, averaging 4.85% compared to 4.55% last week. In contrast, the 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped slightly to 4.36%. Freddie Mac's Chief Economist noted that higher rates and economic slowdown are impacting the housing market, with home sales declining and consumer confidence low.

Positive

• None.

Negative

• Higher mortgage rates at 5.55% may deter potential homebuyers.
• Consumer confidence is low, indicating challenges in the housing market.
• Home sales are continuing to decline.

MCLEAN, Va., Aug. 25, 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 5.55 percent.

“The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “Home sales continue to decline, prices are moderating, and consumer confidence is low. But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market.”

News Facts

• 30-year fixed-rate mortgage averaged 5.55 percent with an average 0.8 point as of August 25, 2022, up from last week when it averaged 5.13 percent. A year ago at this time, the 30-year FRM averaged 2.87 percent.
• 15-year fixed-rate mortgage averaged 4.85 percent with an average 0.8 point, up from last week when it averaged 4.55 percent. A year ago at this time, the 15-year FRM averaged 2.17 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.36 percent with an average 0.4 point, down from last week when it averaged 4.39 percent. A year ago at this time, the 5-year ARM averaged 2.42 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/24a8703a-22af-4267-b292-11eadc0c8b34

FAQ

What is the current average rate for a 30-year fixed mortgage from Freddie Mac as of August 25, 2022?

The average rate for a 30-year fixed mortgage is 5.55%.

What was the average 15-year fixed-rate mortgage rate reported by Freddie Mac on August 25, 2022?

The average 15-year fixed-rate mortgage was 4.85%.

How has the housing market changed according to Freddie Mac's August 25, 2022 press release?

The housing market is experiencing a decline in home sales and low consumer confidence.

What was the average rate of the 5-year Treasury-indexed hybrid adjustable-rate mortgage reported by Freddie Mac?

The average rate for the 5-year ARM was 4.36%.

How do current mortgage rates compare to the previous year according to Freddie Mac?

The current rates are significantly higher than the previous year's rates, with the 30-year FRM at 2.87% a year ago.