Freddie Mac: Rapid-Rising Mortgage Rates Are Slowing

Freddie Mac today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage averaged 5.7%. This number is down from last week's 5.81%.

But that's still double what it was last year when the 30-year fixed-rate mortgage averaged 2.98%.

“The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession,” Freddie Mac Chief Economist Sam Khater said. “This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation.”

Freddie Mac also reported that the 15-year fixed-rate mortgage averaged 4.83%, down from last week from 4.92%. Year-over-year, the 15-year fixed-rate mortgage averaged 2.26%.

“The Freddie Mac fixed rate for a 30-year loan took a breather in the wake of a three-week 72-basis point ascent, declining to 5.7% this week, mirroring the pullback in the 10-year Treasury,” George Ratiu, Realtor.com’s manager of economic research, said.  “With the drumbeat of a possible recession growing louder, investors have been seeking safer assets, driving bond yields lower again this week. Rising prices are eating into consumers’ paychecks, leaving many Americans with less money for discretionary spending. In addition, with inflation outpacing pay raises, most workers are seeing their income fall behind, further straining the finances of buyers who are also facing higher borrowing costs.”

The 5-year adjustable-rate mortgage (ARM) averaged 4.5%. That's up from last week when it averaged 4.41%. A year ago at this time, the 5-year ARM averaged just above 2.5%