Freddie Mac just released the results of its latest Primary Mortgage Market Survey (PMMS). It showed the 30-year fixed-rate mortgage (FRM) averaged 7.09 percent, reaching its highest level in over 20 years, according to a Freddie Mac release.
“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” Freddie Mac Chief Economist Sam Khater said in the release. “The last time the 30-year fixed-rate mortgage exceeded 7 percent was last November. Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.”
The 30-year fixed-rate mortgage average (7.09 percent as of Aug. 17) was up from the week before, when it averaged 6.96 percent. A year ago at this time, the 30-year FRM averaged 5.13 percent.
The 15-year fixed-rate mortgage averaged 6.46 percent, up from the week before, when it averaged 6.34 percent. A year ago at this time, the 15-year FRM averaged 4.55 percent.