Freddie Mac: 30-Year Fixed Mortgage Rates Skyrocket to 7.23%

Freddie Mac has just unveiled the latest results from its Primary Mortgage Market Survey (PMMS), and brace yourselves because the numbers are a rollercoaster. 

The 30-year fixed-rate mortgage (FRM) has skyrocketed to an eye-watering 7.23%, marking its highest level since the dark days of 2001. 

"As rates remain high and supply of unsold homes woefully low, incoming data shows that existing homes sales continue to fall," said Sam Khater, chief economist for Freddie Mac. "However, there are slightly more new homes available, and sales of these new homes continue to rise, helping provide modest relief to the unyielding housing inventory predicament."

At the same time, he warned that this surge might not be a one-time deal.  "Indications of ongoing economic strength will likely continue to keep upward pressure on rates in the short-term," Khater said. 

Here's a snapshot of the news facts:

The 30-year fixed-rate mortgage reached an astronomical 7.23% on Aug. 24, 2023, compared to the previous week's 7.09%. Last year, during this period, the 30-year FRM sat at a much more comfortable 5.55%.

As for the 15-year fixed-rate mortgage, it clocked in at 6.55%, a climb from the previous week's 6.46%. Reflecting back to a year ago, the 15-year FRM was resting at a cozier 4.85%.