The 30-year fixed-rate mortgage (FRM) rose this week, averaging 6.42%, up from last week’s dip to 6.27%, according to the latest results of the Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday, Dec. 29.
The latest numbers:
- 30-year fixed-rate mortgage averaged 6.42% as of December 29, 2022, up from last week when it averaged 6.27%. A year ago at this time, the 30-year FRM averaged 3.11%.
- 15-year fixed-rate mortgage averaged 5.68%, down from last week when it averaged 5.69%. A year ago at this time, the 15-year FRM averaged 2.33%.
Economist takes:
“The housing market remains in the doldrums with declining sales, inventory and prices,” said Sam Khater, Freddie Mac’s chief economist. “The declines in sales and deceleration in home prices began swiftly earlier in 2022 but have moderated more recently. While the intensity of weakness is moderating, the market continues to decline and forward leading indicators suggest housing will remain weak throughout the winter.”
George Ratiu, senior economist and manager of economic research at Realtor.com, commented:
“The Freddie Mac fixed rate for a 30-year loan followed in the footsteps of the 10-year Treasury, which rose from 3.45% at the midpoint of the month to 3.86% yesterday.
“With an eye toward the new year, investors are weighing this month’s positive economic data against the Federal Reserve’s continued monetary tightening.
“On one hand, third quarter gross domestic product was revised upward twice, the job market remains on solid footing, inflation has been moderating, and consumer confidence hit the highest point in eight months. On the other hand, corporate executives are feeling more bearish on account of higher borrowing costs, with the perceived risk of recession rising. Concerns about the business outlook could prompt more company leaders to freeze hiring, or resort to broader layoffs in 2023.”
