The 30-year fixed-rate mortgage (FRM) flipped again this week, averaging 5.55%, up from 5.22%, according to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac today.
Key highlights:
- 30-year fixed-rate mortgage averaged 5.55% with an average 0.8 point as of August 25, 2022, up from last week when it averaged 5.22%. A year ago at this time, the 30-year FRM averaged 2.87%.
- 15-year fixed-rate mortgage averaged 4.85% with an average 0.8 point, up from last week when it averaged 4.55%. A year ago at this time, the 15-year FRM averaged 2.17%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.36% with an average 0.4 point, down from last week when it averaged 4.39%. A year ago at this time, the 5-year ARM averaged 2.42%.
What the experts are saying:
“The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market. Home sales continue to decline, prices are moderating, and consumer confidence is low. But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market.”
-Sam Khater, Chief Economist, Freddie Mac
“The Fed’s continued rate hikes, combined with balance sheet reduction through mortgage-backed securities rolloffs are expected to keep upward pressure on mortgage rates. Looking ahead to the remainder of 2022, consumers’ confidence and their ability to weather higher prices are key to economic activity. The Biden administration’s decision to cancel $10,000 or more in student debt for millions of Americans is likely to offer a short-term boost in spending power. The savings in monthly expenses would bolster household budgets straining against rising prices and rents.”
-George Ratiu, Manager of Economic Research, realtor.com®
