Mortgage Rates Continue to Move Sideways Heading into 2022
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage (FRM) averaged 3.11% for the week ending December 30, 2021, up from 3.05% the previous week and 2.67% a year ago.
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Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage (FRM) averaged 3.11% for the week ending December 30, 2021, up from 3.05% the previous week and 2.67% a year ago. The 15-year FRM averaged 2.33%, also up from 2.30% last week, while the 5-year ARM averaged 2.41%, increasing from 2.37%. Freddie Mac's Chief Economist noted stable mortgage rates amid rising COVID cases and emphasized continued demand from first-time homebuyers into 2022.
Positive
- Steady demand from first-time homebuyers may support mortgage market growth.
- Mortgage rates remain relatively low despite challenges in the economy.
Negative
- Increase in mortgage rates could deter potential homebuyers.
- Comparison shows significant year-over-year increase in mortgage rates, which could affect affordability.
Details
News Market Reaction – FMCC
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MCLEAN, Va., Dec. 30, 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 3.11 percent.
“Mortgage rates have effectively been moving sideways despite the increase in new COVID cases. This is because incoming economic data suggests that the economy remains on firm ground, particularly cyclical industries like manufacturing and housing. Moreover, low interest rates and high asset valuations continue to drive consumer spending,” said Sam Khater, Freddie Mac’s Chief Economist. “While we do expect rates to rise, the push of the first-time homebuyer demographic that’s been propelling the purchase market will continue in 2022 and beyond.”
News Facts
- 30-year fixed-rate mortgage averaged 3.11 percent with an average 0.7 point for the week ending December 30, 2021, up from last week when it averaged 3.05 percent. A year ago at this time, the 30-year FRM averaged 2.67 percent.
- 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.7 point, up from last week when it averaged 2.30 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 2.41 percent with an average 0.5 point, up from last week when it averaged 2.37 percent. A year ago at this time, the 5-year ARM averaged 2.71 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/d826803d-e011-4dc3-9dcf-336197733947
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