Mortgage Rates Hover at Five Percent
Freddie Mac (OTCQB: FMCC) announced that the 30-year fixed-rate mortgage averaged 5.10% as of April 28, 2022, slightly down from last week.
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Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) announced that the 30-year fixed-rate mortgage averaged 5.10% as of April 28, 2022, slightly down from last week. The 15-year fixed-rate mortgage increased to 4.40%, and the 5-year ARM rose to 3.78%. Chief Economist Sam Khater noted that rapid home price growth and rising mortgage rates are impacting purchase demand. As a result, homebuyers are adapting by considering adjustable-rate mortgages and relocating to more affordable areas. A slowdown in demand is anticipated to stabilize home price growth.
Positive
- 30-year fixed-rate mortgage decreased to 5.10%, indicating slight relief for potential homebuyers.
- Freddie Mac's survey reflects ongoing trends in mortgage rates, signaling responsiveness to market conditions.
Negative
- Increasing mortgage rates could limit home affordability and deter potential buyers.
- Rising demand for adjustable-rate mortgages suggests that buyers are struggling to cope with higher costs.
Details
News Market Reaction – FMCC
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MCLEAN, Va., April 28, 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 5.10 percent.
“The combination of swift home price growth and the fastest mortgage rate increase in over forty years is finally affecting purchase demand,” said Sam Khater, Freddie Mac’s Chief Economist. “Homebuyers navigating the current environment are coping in a variety of ways, including switching to adjustable-rate mortgages, moving away from expensive coastal cities, and looking to more affordable suburbs. We expect the decline in demand to soften home price growth to a more sustainable pace later this year.”
News Facts
- 30-year fixed-rate mortgage averaged 5.10 percent with an average 0.8 point as of April 28, 2022, down slightly from last week when it averaged 5.11 percent. A year ago at this time, the 30-year FRM averaged 2.98 percent.
- 15-year fixed-rate mortgage averaged 4.40 percent with an average 0.9 point, up from last week when it averaged 4.38 percent. A year ago at this time, the 15-year FRM averaged 2.31 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.78 percent with an average 0.3 point, up from last week when it averaged 3.75 percent. A year ago at this time, the 5-year ARM averaged 2.64 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/19b16f9a-dbcb-457d-bce9-01a7b0d7d518
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