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.

You may also like:
– Mortgage foreclosures increase in the US: 1% in May and 185% in the year
– Real estate firms Compass and Redfin lay off up to 10% of their staff due to market slowdown
– Housing market in the United States is the least affordable in 16 years, reveals study