Freddie Mac’s PMMS Report Illustrates Rising Mortgage Rates

Every Thursday, Freddie Mac releases the Prime Mortgage Market Survey which shows average rates from last week (this data is not current for today since it’s an average of last week’s applications). The survey is based on purchase applications with at least 20% down payment with excellent credit. So if you’re doing a cash-out refi, have less than stellar credit or have a higher loan to value, your rates would most-likely be higher than what’s shown on the survey.

UPDATE: Rates shown below are not current. Please click here for a mortgage rate quote based on your personal financial scenario for your home located in Washington state.
From Sam Khater, Freddie Mac’s Chief Economist:
“Mortgage rates have increased 1.5 percentage points over the last three months alone, the fastest three-month rise since May of 1994. The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20 percent from a year ago.”

I recall writing a blog post in late 2009 exclaiming with glee that mortgage rates had hit the 5% range. 5-6% rates for a 30-year conventional mortgage is more of a normal range the artificially sweet rates that the Fed has been manipulating these last several years. I have been writing for so long that the low rates were not going to last that I was starting to feel like a broken record. With inflation and the Fed wanting to speed up reversing their support of mortgage backed securities, we will see mortgage rates to trend higher. Global events could cause rates to move lower if investors seek safety in bonds (like mortgage backed securities).

Hopefully the higher rates cools the sellers market to a more balanced level.

Bottom line, if you are considering a refinance, I would not delay getting started. If you need help determining your “blended rate” with your HELOC (rates are set  to rise on home equity loans attached to the prime rate) on your Washington home, or if you’re interested in a refinancing or buying a home, I’m happy to help! Click here for a no-hassle mortgage rate quote for your home located in Renton, Ravenna, Redmond, Ronald or anywhere in Washington state.