Mortgage Rates Move Back Above 3% in the Week Ending October 14, 2021

Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending October 14, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.05% with an average 0.7 point, up from last week when it averaged 2.99% percent. A year ago, at this time, the 30-year FRM averaged 2.81%.

The 15-year fixed-mortgage averaged 2.30% with an average 0.7 point, up from last week when it averaged 2.23%. A year ago, at this time, the 15-year FRM averaged 2.35%.

In remarks prepared for this week’s PMMS report, Freddie Mac’s Chief Economist, Sam Khater said, “The 30-year fixed-rate mortgage rose to its highest point since April. 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.”