The 30-Year Fixed-Rate Mortgage Lingers Just Under 6.5 Percent

Rhea-AI Summary

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) shows the 30-year fixed-rate mortgage (FRM) averaged 6.46%, down from 6.49% last week and 7.23% a year ago. The 15-year FRM averaged 5.62%, down from 5.66% last week and 6.55% a year ago. Chief Economist Sam Khater notes that softer economic data suggests rates will gently decline through year-end. Despite rates lingering under 6.5%, potential homebuyers remain unmotivated. Khater predicts rates may need to drop another percentage point to generate buyer demand. The PMMS® focuses on conventional, conforming home purchase loans for borrowers with 20% down and excellent credit.

Positive

• 30-year fixed-rate mortgage decreased to 6.46% from 6.49% last week
• 15-year fixed-rate mortgage decreased to 5.62% from 5.66% last week
• Both 30-year and 15-year FRM rates are significantly lower than a year ago

Negative

• Current mortgage rates are not enough to motivate potential homebuyers
• Rates may need to decline another percentage point to generate buyer demand

MCLEAN, Va., Aug. 22, 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 6.46 percent.

“Although mortgage rates have stayed relatively flat over the past couple of weeks, softer incoming economic data suggest rates will gently slope downward through the end of the year,” said Sam Khater, Freddie Mac’s Chief Economist. “Earlier this month, rates plunged and are now lingering just under 6.5 percent, which has not been enough to motivate potential homebuyers. We expect rates likely will need to decline another percentage point to generate buyer demand.”

News Facts

• The 30-year FRM averaged 6.46 percent as of August 22, 2024, down from last week when it averaged 6.49 percent. A year ago at this time, the 30-year FRM averaged 7.23 percent.
• The 15-year FRM averaged 5.62 percent, down from last week when it averaged 5.66 percent. A year ago at this time, the 15-year FRM averaged 6.55 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 chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/caad200e-3f57-45d0-8ccb-d5743cebda46

FAQ

What is the current 30-year fixed-rate mortgage average according to Freddie Mac's PMMS® as of August 22, 2024?

According to Freddie Mac's Primary Mortgage Market Survey® (PMMS®), the 30-year fixed-rate mortgage averaged 6.46% as of August 22, 2024.

How has the 30-year fixed-rate mortgage (FMCC) changed compared to last year?

The 30-year fixed-rate mortgage has decreased significantly compared to last year. As of August 22, 2024, it averaged 6.46%, while a year ago at the same time, it averaged 7.23%.

What is Freddie Mac's Chief Economist's prediction for mortgage rates through the end of 2024?

Sam Khater, Freddie Mac's Chief Economist, predicts that mortgage rates will gently slope downward through the end of 2024 based on softer incoming economic data.

How much does Freddie Mac (FMCC) suggest mortgage rates need to decline to generate buyer demand?

According to Freddie Mac's Chief Economist, rates likely will need to decline another percentage point from the current level to generate buyer demand.