Mortgage rates fall slightly but housing demand continues to fall in the US.

Freddie Mac released results from its Primary Mortgage Market Survey (PMMS), indicating that the Fixed Rate Mortgage (FRM) at 30 years averaged 5.30%.

“Buying demand continues to fall as the cumulative impact of higher rates, elevated home prices, increased risk of recession and declining consumer confidence affect home buyers,” said Sam Khater, chief economist at Freddie Mac.

“It is clear that in the last two years, the combination of the pandemic, historically low mortgage rates and the opportunity to work remotely stimulated greater demand. Now, as the market adjusts to a higher rate environment, we are looking at a period of flat selling activity until the market normalizes,” Khater explained.

This is how the mortgage rates were:

Mortgage to 30 years

The fixed rate mortgage at 30 years averaged 5.3% with an average of 0.8 points at 28 July 2022, down from last week when it averaged 5.54%. A year ago at this time, the FRM of 30 years averaged 2.8%.

Mortgage to 15 years

The fixed rate mortgage at 15 years averaged 4.58% with an average of 0.8 points, down from last week when it averaged 4.78%. A year ago at this time, the FRM of 15 years averaged 2.1%.

Hybrid mortgage

The 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 4.28% with an average of 0.3 points, down from last week when it averaged 4.31%. A year ago at this time, the 5-year ARM averaged 2.50%.

The PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put up a 20 percent down payment and have excellent credit.

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