Mortgage Rates Shift Upward
On July 14, 2022, Freddie Mac (FMCC) reported an increase in mortgage rates, with the 30-year fixed-rate mortgage averaging 5.51%, up from 5.30% the previous week and significantly higher than 2.88% a year ago.
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Rhea-AI Summary
On July 14, 2022, Freddie Mac (FMCC) reported an increase in mortgage rates, with the 30-year fixed-rate mortgage averaging 5.51%, up from 5.30% the previous week and significantly higher than 2.88% a year ago. The 15-year FRM rose to 4.67% from 4.45%, while the 5-year ARM increased to 4.35% from 4.19%. Chief Economist Sam Khater noted that high rates, escalating home prices, and inflation continue to hinder affordability for many potential homebuyers.
Positive
- None
Negative
- Rising mortgage rates may deter potential homebuyers, affecting sales and market dynamics.
- Affordability challenges persist due to high rates and inflation, potentially limiting consumer demand.
Details
News Market Reaction – FMCC
The recorded move for FMCC in the trading session of this news was +29.97%.
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MCLEAN, Va., July 14, 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 5.51 percent.
“Mortgage rates are volatile as economic growth slows due to fiscal and monetary drags,” said Sam Khater, Freddie Mac’s Chief Economist. “With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans.”
News Facts
- 30-year fixed-rate mortgage averaged 5.51 percent with an average 0.8 point as of July 14, 2022, up from last week when it averaged 5.30 percent. A year ago at this time, the 30-year FRM averaged 2.88 percent.
- 15-year fixed-rate mortgage averaged 4.67 percent with an average 0.8 point, up from last week when it averaged 4.45 percent. A year ago at this time, the 15-year FRM averaged 2.22 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.35 percent with an average 0.2 point, up from last week when it averaged 4.19 percent. A year ago at this time, the 5-year ARM averaged 2.47 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/f8a3c76f-4179-4b91-b87e-4a94e4390311
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