Mortgage Rates Continue to Move Up
Freddie Mac (OTCQB: FMCC) reported the average rate for a 30-year fixed-rate mortgage at 5.66% as of September 1, 2022, up from 5.55% the previous week.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) reported the average rate for a 30-year fixed-rate mortgage at 5.66% as of September 1, 2022, up from 5.55% the previous week. This marks a significant increase compared to 2.87% a year ago. The 15-year fixed-rate mortgage averaged 4.98%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) reached 4.51%. Chief Economist Sam Khater indicated that rising mortgage rates are challenging the housing market, causing price adjustments due to decreased buyer demand.
Positive
- None.
Negative
- Rising mortgage rates could lead to decreased purchase demand.
- 30-year fixed-rate mortgage nearly doubled compared to a year ago.
- Potential for continued price growth deceleration in housing market.
Details
News Market Reaction – FMCC
The recorded move for FMCC in the trading session of this news was -0.48%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, Va., Sept. 01, 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 5.66 percent.
“The market’s renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. “The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration.”
News Facts
- 30-year fixed-rate mortgage averaged 5.66 percent with an average 0.8 point as of September 1, 2022, up from last week when it averaged 5.55 percent. A year ago at this time, the 30-year FRM averaged 2.87 percent.
- 15-year fixed-rate mortgage averaged 4.98 percent with an average 0.8 point, up from last week when it averaged 4.85 percent. A year ago at this time, the 15-year FRM averaged 2.18 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.51 percent with an average 0.4 point, up from last week when it averaged 4.36 percent. A year ago at this time, the 5-year ARM averaged 2.43 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/8622f58b-ab45-45da-882c-4cdbe4a341c3
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.