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Freddie Mac’s weekly Primary Mortgage Market Survey report, released Thursday, shows that fixed mortgage rates decreased this week.
Rates dipped to 5.3% from 5.54% last week, with purchase demand continuing to tumble due to the cumulative effects of higher rates, elevated home prices, increased recession risk, and declining consumer confidence taking a toll on home buyers, according to Freddie Mac Chief Economist Sam Khater.
“It’s clear that over the past two years, the combination of the pandemic, record-low mortgage rates, and the opportunity to work remotely spurred greater demand,” Khater said. “Now, as the market adjusts to a higher rate environment, we are seeing a period of deflated sales activity until the market normalizes.”
According to the report:
- 30-year fixed-rate mortgage averaged 5.3% with an average 0.8 point as of July 28th, down from last week when it averaged 5.54%. A year ago at this time, the 30-year FRM averaged 2.8%.
- 15-year fixed-rate averaged 4.58% with an average 0.8 point, down from last week when it averaged 4.75%. A year ago at this time, the 15-year FRM averaged 2.10%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.29% with an average 0.3 point, down from last week when it averaged 4.31%. A year ago at this time, the 5-year ARM averaged 2.45%.
The survey is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% 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.