Mortgage Rates Climb Above 3% in the Week Ending September 30, 2021

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending September 30, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.01% with an average 0.7 point, up from last week when it averaged 2.88%. A year ago, at this time, the 30-year FRM averaged 2.88%. The 15-year fixed-mortgage averaged 2.28% with an average 0.6 point, up from last week when it averaged 2.15%. A year ago, at this time, the 15-year FRM averaged 2.36%.

In remarks prepared for this week’s PMMS report, Freddie Mac’s Chief Economist, Sam Khater said, “Mortgage rates rose across all loan types of this week as the 10-year U.S. Treasury yield reached its highest point since June. Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages.”

Khater continued, “We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.”