30-year mortgage rates soar to 5.78%, biggest increase in 35 years



Freddie Mac, the home finance giant, released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 5.78%.

“Mortgage rates increased as 30-year fixed-rate mortgage rose more than half a percentage pointmarking the largest one-week increase in our survey since 1987said Sam Khater, chief economist at Freddie Mac.

These higher rates are the result of a change in expectations about inflation and the course of monetary policy.. Higher mortgage rates will lead to a moderation of the breakneck pace of real estate activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced real estate market,” Khater explained.

This is how the rates were:

30-year fixed rate

The 30-year fixed-rate mortgage averaged 5.78% with an average of 0.9 points as of June 16, 2022, compared to last week when it averaged 5.23%. A year ago at this time, the 30-year FRM averaged 2.93%.

15-year fixed rate

According to Freddie Mac, the mortgage on 15-year fixed rate averaged 4.81% with an average of 0.9 points, more than last week when it averaged 4.38%. A year ago at this time, the 15-year FRM averaged 2.24%.

hybrid mortgage rate

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.33% with an average of 0.3 points, more than last week when it averaged 4.12%. A year ago at this time, the 5-year ARM averaged 2.52%.

PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put down a 20 percent down payment and have excellent credit. Average Commitment Rates should be reported along with average fees and points to reflect the full initial cost of obtaining the mortgage.

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Source-eldiariony.com