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30-year mortgage rates climb for fifth week

EditorBrando Bricchi
Published 02/05/2024, 17:08
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MCLEAN, Va. - Freddie Mac reported today that the 30-year fixed-rate mortgage (FRM) has risen for the fifth consecutive week, reaching an average of 7.22 percent. This uptick comes amid the Spring Homebuying Season, a typically active period for real estate transactions. According to Freddie Mac's Chief Economist, Sam Khater, the increase in rates is not expected to subside shortly, posing challenges for potential homebuyers.

The latest data from the Primary Mortgage Market Survey® (PMMS®) indicates that the 30-year FRM average is up from last week's 7.17 percent and significantly higher than the 6.39 percent average from the same time last year. The 15-year FRM also saw a slight increase, averaging 6.47 percent, up from 6.44 percent the previous week and up from 5.76 percent a year ago.

Despite the rising rates, there is evidence that homebuyers are adjusting to the higher costs. Recent figures on pending home sales have reached the highest level in a year, suggesting that market activity remains robust.

The survey by Freddie Mac focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit who put down 20 percent. This long-standing survey serves as a critical indicator of mortgage rate trends in the United States.

Freddie Mac, a public government-sponsored enterprise, has a mission to stabilize the housing market and provide affordability to potential homeowners. Since its inception in 1970, Freddie Mac has played a pivotal role in promoting liquidity and ensuring access to housing for tens of millions of Americans.

The information for this report is based on a press release statement from Freddie Mac.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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