Freddie Mac: Mortgage Rates Sluggishly Inch Up

Freddie Mac today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage increased just slightly this week.

The 30-year fixed-rate mortgage (FRM) averaged 5.54% with an average 0.8 point as of July 21, Freddie Mac said. The percentage was up just a fraction from last week’s average of 5.51%.

A year ago at this time, the 30-year FRM averaged 2.78%.

“The housing market remains sluggish as mortgage rates inch up for a second consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably.”

For 15-year fixed-rate mortgages, the average was 4.75% with an average 0.8 point, up from last week’s 4.67%. Year-over-year, the 15-year FRM averaged 2.12% in 2021.

The 5-year treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.31% with an average 0.3 point, down only slightly from last week when it averaged 4.35%. A year ago, the 5-year ARM averaged 2.49%.

The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit, Freddie Mac said.