Freddie Mac Observes Rate Decline Due to Inflation, Economic Downturn

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Freddie Mac’s latest Primary Mortgage Market Survey (PMMS) results show the 30-year fixed-rate mortgage averaged 5.7% with an average 0.9 point as of June 30, down from last week, when it averaged 5.81%.

A year ago at this time, the 30-year FRM averaged 2.98%.

“The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession,” says Sam Khater, Freddie Mac’s chief economist. “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.”

The 15-year fixed-rate mortgage averaged 4.83% with an average 0.9 point, down from last week when it averaged 4.92%. A year ago at this time, the 15-year FRM averaged 2.26%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.50% with an average 0.3 point, up from last week when it averaged 4.41%. A year ago at this time, the 5-year ARM averaged 2.54%.

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