30-year mortgage interest rate rises to 5.3%, Freddie Mac reports


Mortgage rates are expected to decline in the coming months in the face of increased buyer demand due to inflation and the Fed’s monetary policies.

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Freddie Mac today reported the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 5.30%.

“Homebuyers continue to show resilience despite rising mortgage rates causing monthly payments to rise by about a third compared to a year ago”said Sam Khater, chief economist at Freddie Mac.

The specialist explained that: “Several factors are contributing to this dynamic, including the large wave of first-time homebuyers looking to make their dreams of homeownership come true. In the coming months, we expect monetary policy and inflation to discourage many consumers, weakening purchase demand and slowing house price growth.”

The Freddie Mac report notes:

The 30-year fixed-rate mortgage averaged 5.3% averaging 0.9 points as of May 12, 2022, compared to last week when it averaged 5.27%. A year ago at this time, the 30-year FRM averaged 2.94%.

The 15-year fixed-rate mortgage averaged 4.48% with an average of 0.9 points, down from last week when it averaged 4.52%. A year ago at this time, the 15-year FRM averaged 2.26%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.98% with an average of 0.3 points, more than last week when it averaged 3.96%. A year ago at this time, the 5-year ARM averaged 2.59%.

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Source-eldiariony.com