Mortgage Rates Reach Highest Point Since July

Rhea-AI Summary

Freddie Mac (FMCC) reported that mortgage rates have reached their highest levels since July, with the 30-year fixed-rate mortgage (FRM) averaging 6.91%, up from 6.85% last week and 6.62% a year ago. The 15-year FRM increased to 6.13% from 6.0% last week and 5.89% a year ago.

According to Chief Economist Sam Khater, while rates are elevated and affordability challenges persist compared to last year, there are signs of increased buyer activity as pending home sales rise. The PMMS® survey focuses on conventional, conforming home purchase loans for borrowers with 20% down payments and excellent credit.

Positive

• Pending home sales showing signs of improvement despite high rates
• Buyers showing increased market participation

Negative

• 30-year FRM reached highest point in 6 months at 6.91%
• 15-year FRM increased to 6.13%, up from 5.89% year-over-year
• Persistent market affordability challenges

MCLEAN, Va., Jan. 02, 2025 (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 6.91 percent.

“Inching up to just shy of seven percent, mortgage rates reached their highest point in nearly six months,” said Sam Khater, Freddie Mac’s Chief Economist. “Compared to this time last year, rates are elevated and the market’s affordability headwinds persist. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise.”

News Facts

• The 30-year FRM averaged 6.91 percent as of January 2, 2025, up from last week when it averaged 6.85 percent. A year ago at this time, the 30-year FRM averaged 6.62 percent.
• The 15-year FRM averaged 6.13 percent, up from last week when it averaged 6.0 percent. A year ago at this time, the 15-year FRM averaged 5.89 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 | X | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT:
Mollie Laniado
(571)382-1784
Mollie_Laniado@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3a06b0b4-2e74-422d-be0d-15226e0c6d10

FAQ

What is the current 30-year fixed mortgage rate for FMCC as of January 2025?

According to Freddie Mac's PMMS survey, the 30-year fixed-rate mortgage averaged 6.91% as of January 2, 2025.

How much have FMCC mortgage rates increased compared to last year?

The 30-year FRM increased from 6.62% to 6.91% year-over-year, while the 15-year FRM rose from 5.89% to 6.13%.

What is the current trend in pending home sales according to FMCC?

According to Freddie Mac, pending home sales are rising, indicating buyers are becoming more active despite elevated rates.

What are the current affordability conditions in the housing market according to FMCC?

Freddie Mac reports persistent affordability headwinds in the market, with rates at their highest point in nearly six months.