Freddie Mac’s Primary Mortgage Market Survey (PMMS) results show that the 30-year fixed-rate mortgage (FRM) averaged 5.3% as of July 28.
A week earlier, it averaged 5.54%, and a year ago at this time, the 30-year FRM averaged 2.8%.
“Purchase demand continues to tumble as the cumulative impact of higher rates, elevated home prices, increased recession risk, and declining consumer confidence take a toll on homebuyers,” says Sam Khater, Freddie Mac’s chief economist. “It’s clear that over the past two years, the combination of the pandemic, record low mortgage rates, and the opportunity to work remotely spurred greater demand. Now, as the market adjusts to a higher rate environment, we are seeing a period of deflated sales activity until the market normalizes.”
The 15-year fixed-rate mortgage averaged 4.58% with an average 0.8 point, down from last week when it averaged 4.75%. A year ago at this time, the 15-year FRM averaged 2.10%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.29% with an average 0.3 point, down from last week when it averaged 4.31%. A year ago at this time, the 5-year ARM averaged 2.45%.
Image: Zac Gudakov on Unsplash
