Despite Rising Mortgage Rates, Homebuyer Interest Keeps Market Competitive


Freddie Mac’s Primary Mortgage Market Survey (PMMS) results show that the 30-year fixed-rate mortgage (FRM) averaged 5.81% with an average 0.8 point as of June 23: up from last week, when it averaged 5.78%.

A year ago at this time, the 30-year FRM averaged 3.02%.

“Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year,” observes Sam Khater, Freddie Mac’s chief economist. “The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales. However, in reality many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.”

The 15-year fixed-rate mortgage averaged 4.92% with an average 0.9 point, up from last week when it averaged 4.81%. A year ago at this time, the 15-year FRM averaged 2.34%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.41% with an average 0.3 point, up from last week when it averaged 4.33%. A year ago at this time, the 5-year ARM averaged 2.53%.

Image: MOHD AZRIN on Unsplash

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