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Mortgage Rates Continue to Decrease

Source: Freddie Mac

May 26, 2022

Sam Khater, Chief Economist, Freddie Mac:

“Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing. Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods.”

May 19, 2022 (last week)

“Economic uncertainty is causing mortgage rate volatility…”

Primary Mortgage Market Survey®

U.S. Weekly Averages As Of 05/26//2022

30-Yr FRM

15-Yr FRM

5/1-Yr ARM

5.1%

˅0.15 1-Wk

4.31%

˅0.12 1-Wk

4.2%

^0.12 1-Wk

^2.15 1-yr

^2.04 1-yr

^1.61 1-yr

0.9 Fees/Points

0.8 Fees/Points

0.3 Fees/Points

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Mortgage Rates

Source: Freddie Mac

Freddie Mac 30-Year Fixed Rate, January 2022–Today

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Current Mortgage Rate Compared to �the Last Five Decades�

Source: Freddie Mac

Current Rate: 5.1%

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For Almost 50 Years, the 30-Year Mortgage Rate �Has Moved in Unison with the 10-year Treasury Rate

Source: Freddie Mac, Macrotrends

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Average Spread 1.7

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The housing market is at a turning�point. . . .

We’re starting to see signs of �a new direction, but the ball is still in �sellers’ courts in most housing markets.

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- Danielle Hale, Chief Economist, realtor.com

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121 Markets Nationwide See Double-Digit Home Showings Per Listing

Source: ShowingTime

ShowingTime Monthly Index

Pre-Pandemic Demand

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Existing Home Sales

Source: NAR

Seasonally Adjusted Annual Rate, In Million

Pre-Pandemic Demand

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Average Days on the Market

Source: NAR

April 2022

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Average Number of Offers

Source: NAR

April 2022

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Recession �doesn’t equal �Housing Crisis

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. . . Experts don’t believe the market is in a bubble or a crash is in the cards, like during the Great Recession. The nation is still suffering from a housing shortage that has reached crisis proportions at a time when many millennials are reaching the age when they start to consider homeownership. That’s likely to keep prices high.

- realtor.com

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A Recession Doesn’t Equal a Housing Crisis

Source: CoreLogic, The Balance

Home Price Change During Last 6 Recessions

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2008

1991