Mortgage rates cross 3%, highest since April, amid building inflationary pressure

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.05 percent.

“The 30-year fixed-rate mortgage rose to its highest point since April,” said Sam Khater, Freddie Mac’s Chief Economist. “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing.”

Khater continued, “Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.”

News Facts

• 30-year fixed-rate mortgage averaged 3.05 percent with an average 0.7 point for the week ending October 14, 2021, up from last week when it averaged 2.99 percent. A year ago at this time, the 30-year FRM averaged 2.81 percent.
• 15-year fixed-rate mortgage averaged 2.30 percent with an average 0.7 point, up from last week when it averaged 2.23 percent. A year ago at this time, the 15-year FRM averaged 2.35 percent.
• 5-year Treasury (TSRMF)-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.55 percent with an average 0.2 point, up from last week when it averaged 2.52 percent. A year ago at this time, the 5-year ARM averaged 2.90 percent.