Mortgage Rates Jump Back Above 5%

After falling below 5% last week for the first time since April, mortgage rates jumped back up this week, Freddie Mac said today. 

The 30-year fixed-rate mortgage averaged 5.22% this week, an increase of 23 basis points, according to Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS). 

 “The 30-year fixed-rate went back up to well over 5% this week, a reminder that recent volatility remains persistent,” said Sam Khater, Freddie Mac’s chief economist. “Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market.”

Khater said declines in purchase demand “continue to diminish, while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer.”

According to the report:

• The 30-year fixed-rate mortgage (FRM) averaged 5.22% with an average 0.7 point as of Aug. 11, 2022, up from 4.99% last week. A year ago at this time, the 30-year FRM averaged 2.87%.
• The 15-year fixed-rate mortgage averaged 4.59% with an average 0.7 point, up from 4.26% last week. A year ago, the 15-year FRM averaged 2.15%.
• The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.43% with an average 0 point, up from 4.25% last week. A year ago, the 5-year ARM averaged 2.44%.

Freddie Mac’s PMMS focuses 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.