Mortgage Rates Continue to Decrease
Freddie Mac (OTCQB: FMCC) announced results from its Primary Mortgage Market Survey (PMMS) for the week ending June 17, 2021.
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Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) announced results from its Primary Mortgage Market Survey (PMMS) for the week ending June 17, 2021. The 30-year fixed-rate mortgage averaged 2.93%, down from 2.96% the previous week and 3.13% a year ago. The 15-year fixed-rate mortgage slightly rose to 2.24%, while the 5-year adjustable-rate mortgage dropped to 2.52%. Chief Economist Sam Khater noted that while mortgage rates are low, weakened demand is primarily due to high home prices, suggesting ongoing affordability challenges.
Positive
- 30-year fixed-rate mortgage decreased to 2.93%, benefiting potential homebuyers.
- 5-year Treasury-indexed hybrid ARM dropped to 2.52%, indicating lower borrowing costs.
Negative
- Weakened purchase demand attributed to affordability constraints from high home prices.
- Inventory tightness may sustain high prices despite decreased demand.
Details
News Market Reaction – FMCC
The recorded move for FMCC in the trading session of this news was -3.48%.
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MCLEAN, Va., June 17, 2021 (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 2.93 percent.
“Mortgage rates continue to drift down as markets concur with the view that inflation increases are temporary,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.”
News Facts
- 30-year fixed-rate mortgage averaged 2.93 percent with an average 0.7 point for the week ending June 17, 2021, down from last week when it averaged 2.96 percent. A year ago at this time, the 30-year FRM averaged 3.13 percent.
- 15-year fixed-rate mortgage averaged 2.24 percent with an average 0.6 point, up slightly from last week when it averaged 2.23 percent. A year ago at this time, the 15-year FRM averaged 2.58 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.3 point, down from last week when it averaged 2.55 percent. A year ago at this time, the 5-year ARM averaged 3.09 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:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/76d7b78b-1221-40a2-bf6e-9936c19f7900
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