The 30-year fixed-rate mortgage (FRM) ticked up over 5% this week, averaging 5.22%, up from 4.99% last week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac, released Thursday.
Key survey findings this week:
- 30-year fixed-rate mortgage averaged 5.22% with an average 0.7 point as of August 11, 2022, up from last week when it averaged 4.99%. A year ago at this time, the 30-year FRM averaged 2.87%.
- 15-year fixed-rate mortgage averaged 4.59% with an average 0.7 point, up from last week when it averaged 4.26%. A year ago at this time, the 15-year FRM averaged 2.15%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.43% with an average 0.0 point, up from last week when it averaged 4.25%. A year ago at this time, the 5-year ARM averaged 2.44%.
What the experts are saying:
“The 30-year fixed-rate went back up to well over five% 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. 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.”
George Ratiu, senior economist and manager, Economic Research for realtor.com®, commented, “The Freddie Mac fixed rate for a 30-year loan moved sideways this week, as the latest consumer price data indicated an easing of inflationary pressures. With investors welcoming this positive development, the 10-year Treasury moved higher in the first half of the week. Markets are seeking more certainty around the economic outlook, as incoming data continue to highlight a steady level of business activity and consumer spending. While concerns of a recession remain elevated, August seems to be offering a slight breather.
“Real estate markets continue on the path toward rebalancing. The inventory of homes for sale increased solidly in July, moving toward levels not seen since mid-2020. With more available properties and less competition, more homeowners are beginning to adjust to the new reality and resorting to price cuts to incentivize buyers. The share of listed homes with price reductions reached 19% in July, closing in on levels we haven’t seen since 2017. Moreover, median prices retreated from June’s record-high, as the pace of growth moderated. These shifts point toward a welcome change for buyers who are still in the market. The upcoming fall season may offer an even better window of opportunity, as long as the inventory landscape continues improving, as we’ve seen in recent months,” Ratiu concluded.
