Mortgage rates fall below 5% due to inflationary pressures and fears of recession in the US.

Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), which shows that the 30-year fixed-rate mortgage (FRM) averaged 4.99% this week.

“Mortgage rates remained volatile due to the tug-of-war between inflationary pressures and a clear slowdown in economic growthsaid Sam Khater, chief economist at Freddie Mac.

“The great uncertainty surrounding the inflation and other factors will likely keep rates variableespecially as the Fed tries to navigate the current economic environment,” Khater said.

Average weekly US mortgage rates as of August 4, 2022 (Freddie Mac).

So were the rates

30-year rate

The 30-year fixed rate mortgage averaged 4.99% with an average of 0.8 points as of August 4, 2022, down from last week when it averaged 5.30%. A year ago at this time, the 30-year FRM averaged 2.77%.

15-year rate

The 15-year fixed-rate mortgage averaged 4.26% with an average of 0.6 points, down from last week when it averaged 4.58%. A year ago at this time, the 15-year FRM averaged 2.10%.

hybrid rate

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.25% with an average of 0.3 points, down from last week when it averaged 4.29%. A year ago at this time, the 5-year ARM averaged 2.40%.

PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put down a 20% down payment and have excellent credit.

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