Mortgage Rates Remain Unchanged from Last Week
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 3.55% for the week ending February 3, 2022, stable for three consecutive weeks.
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Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 3.55% for the week ending February 3, 2022, stable for three consecutive weeks. This stagnation reflects the economic challenges posed by the Omicron variant of COVID-19. Chief Economist Sam Khater anticipates that as the economy improves, mortgage rates will begin to rise again. In the meantime, strong homebuyer demand persists despite low supply, contributing to increased home prices. Comparatively, the 30-year FRM was 2.73% a year ago, with the 15-year FRM at 2.77%.
Positive
- Elevated homebuyer demand continues amid low supply, supporting higher home prices.
- 30-year fixed-rate mortgage stable at 3.55%, indicating a brief respite for borrowers.
Negative
- Stagnation in mortgage rates reflects economic challenges due to the Omicron variant.
- Year-over-year increase in 30-year fixed-rate mortgage from 2.73% to 3.55%.
Details
News Market Reaction – FMCC
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MCLEAN, Va., Feb. 03, 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 3.55 percent.
“The economy lost some momentum in January, leaving mortgage rates unchanged from last week and relatively flat for the third consecutive week. This stagnation reflects the economic impact of the Omicron variant of COVID-19, which we believe will subside in the coming months,” said Sam Khater, Freddie Mac’s Chief Economist. “As economic recovery continues going into the spring and summer, mortgage rates are expected to resume their upward trajectory. In the meantime, recent data suggests that homebuyer demand continues to be elevated as supply remains low, driving higher home prices.”
News Facts
- 30-year fixed-rate mortgage averaged 3.55 percent with an average 0.8 point for the week ending February 3, 2022, unchanged from last week. A year ago at this time, the 30-year FRM averaged 2.73 percent.
- 15-year fixed-rate mortgage averaged 2.77 percent with an average 0.7 point, down from last week when it averaged 2.80 percent. A year ago at this time, the 15-year FRM averaged 2.21 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent with an average 0.3 point, up slightly from last week when it averaged 2.70 percent. A year ago at this time, the 5-year ARM averaged 2.78 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/fff8005d-3d99-4de7-8000-1f2d6af0ca14
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