Economic Volatility Causing Mortgage Rate Volatility

May 19, 2022

Potential existing-home sales in March decreased to a 5.5 million seasonally adjusted, annualized rate (SAAR), a 1.5 percent drop from February

Staff Writer

Freddie Mac officials say the volatility is causing purchase demand to wane.

Freddie Mac’s weekly Primary Mortgage Market Survey report released Thursday showed two decreases in mortgage rates and one increase, signaling that economic volatility is causing mortgage rate volatility, according to company officials.

“As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue,” said Sam Khater, Freddie Mac’s chief economist.

According to the report:

The 30-year fixed rate mortgage averaged 5.25% with an average 0.9 point as of May 19, 2022, down from last week when it averaged 5.3%. A year ago at this time, the 30-year FRM averaged 3%.

The 15-year fixed-rate mortgage averaged 4.43%with an average 0.9 point, down from last week when it averaged 4.48%. A year ago at this time, the 15-year FRM averaged 2.29%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.08% with an average 0.2 point, up from last week when it averaged 3.98%. A year ago at this time, the 5-year ARM averaged 2.59%.

Freddie Mac

About the author

Steve Goode

Staff Writer

Steve Goode was a staff writer at NMP.

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May 19, 2022

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