Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.19 percent.
“Mortgage rates continue to linger above seven percent as the Federal Reserve paused their interest rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist. “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.”
30-year fixed-rate mortgage averaged 7.19 percent as of September 21, 2023, up from last week when it averaged 7.18 percent. A year ago at this time, the 30-year FRM averaged 6.29 percent.
15-year fixed-rate mortgage averaged 6.54 percent, up from last week when it averaged 6.51 percent. A year ago at this time, the 15-year FRM averaged 5.44 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.
Jessica Lautz, National Association of Realtor Deputy Chief Economist and Vice President of Research says the newest data, released today, shows that the typical single-family existing home was $413,500 last month. For that home, the typical monthly mortgage payment would be $2,243.
While the Fed paused rate hikes, ultimately impacting the mortgage rates, the elevated rates impact where a buyer can purchase and how much home they can afford today. In 2024, mortgage interest rates may fall if rate hikes stop and inflation continues to cool. It is important to note that while mortgage interest rates are a huge driver of the home-buying market, they do not matter for the 27% of the market who are paying all cash. In August 2019, all-cash buyers were just 19% of the buying market. Over the last year, all cash buyers have averaged 27%. However, the typical first-time, single, or minority buyer has no ready cash to purchase a home. This continues to be a housing market of haves and have-nots.