New data from Freddie Mac
The rapid rise in mortgage rates has finally paused, Freddie Mac’s Primary Mortgage Market Survey has revealed. According to the survey, the 30-year fixed rate mortgage averaged 5.7% - down from the prior week when it averaged 5.81% – which chief economist Sam Khater attributed to the opposing forces of high inflation and the increasing likelihood of economic recession.
A year ago at this time, the 30-year FRM averaged 2.98%.
“This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation,” Khater said.
The same survey showed that the 15-year FRM averaged 4.83%, down from the previous week’s recorded 4.92% and up from the previous year’s average of 2.26%.
Freddie Mac’s Primary Mortgage Market Survey focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit and 20% down. Average commitment rates are reported with average fees and points to reflect the total upfront cost of obtaining the mortgage.