The 30-year Fixed-Rate Mortgage Increased by a Quarter of a Percent this Week
Freddie Mac (OTCQB: FMCC) reported on September 22, 2022, that the 30-year fixed-rate mortgage averaged 6.29%, up from 6.02% the previous week and significantly higher than 2.88% a year ago.
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Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) reported on September 22, 2022, that the 30-year fixed-rate mortgage averaged 6.29%, up from 6.02% the previous week and significantly higher than 2.88% a year ago. The 15-year fixed-rate mortgage rose to 5.44%, while the 5-year ARM increased to 4.97%. The housing market faces challenges as sales decline due to rising rates, although housing inventory remains low. Freddie Mac will enhance its Primary Mortgage Market Survey in November to improve data collection.
Positive
- Upcoming enhancements to the PMMS aimed at improving data quality and diversity.
- Freddie Mac continues to support housing access for millions.
Negative
- 30-year fixed-rate mortgage increased to 6.29%, impacting affordability.
- Home sales have decreased due to rising mortgage rates.
Details
News Market Reaction – FMCC
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MCLEAN, Va., Sept. 22, 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 6.29 percent.
“The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” said Sam Khater, Freddie Mac’s Chief Economist. “Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels.”
News Facts
- 30-year fixed-rate mortgage averaged 6.29 percent with an average 0.9 point as of September 22, 2022, up from last week when it averaged 6.02 percent. A year ago at this time, the 30-year FRM averaged 2.88 percent.
- 15-year fixed-rate mortgage averaged 5.44 percent with an average 1.0 point, up from last week when it averaged 5.21 percent. A year ago at this time, the 15-year FRM averaged 2.15 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.97 percent with an average 0.4 point, up from last week when it averaged 4.93 percent. A year ago at this time, the 5-year ARM averaged 2.43 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.
NOTE: Freddie Mac is making a number of enhancements to the PMMS to improve the collection, quality and diversity of data used. Instead of surveying lenders, the weekly results will be based on applications received from thousands of lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. Additionally, we will no longer publish fees/points or adjustable rates. The newly recast PMMS will be put in place in November 2022, and the weekly distribution will be Thursdays at 12 p.m., noon, ET.
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/606c7c1f-47cf-4973-afcc-2e1752df6ed5
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