Mortgage Rates Dip Below 5% (Just Barely); Here’s What Freddie Mac is Saying

 WASHINGTON–Mortgage rates last week just barely slid below the 5% mark for the first time since April, declining to 4.99%, according to Freddie Mac.

In Freddie Mac’s weekly Primary Mortgage Market Survey report, the data show that fixed mortgage rates remained volatile due to a tug of war between inflationary pressures and a clear slowdown in economic growth, according to Freddie Mac Chief Economist Sam Khater.

“The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment,” Khater said in a statement.

The last time mortgage rates were in the fours was the week of April 7, when they stood at 4.72%, the data show.

According to the Freddie Mac:

• The 30-year fixed-rate mortgage averaged 4.99% with an average 0.8 point as of Aug. 4, 2022, down from last week when it averaged 5.3%. A year ago at this time, the 30-year FRM averaged 2.77%.
• The 15-year fixed-rate mortgage averaged 4.26% with an average 0.6 point, down from last week when it averaged 4.58%. A year ago at this time, the 15-year FRM averaged 2.10%.
• The 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 4.25% with an average 0.3 point, down from last week when it averaged 4.29%. A year ago at this time, the 5-year ARM averaged 2.40%.

Stronger Signal Being Sought

Separately, George Ratiu, Realtor.com manager of economic research, said good economic news has helped bring rates down.

“However, the number of job openings softened, even as the labor market remained tight," Ratiu said in a statement. "Capital markets are seeking a stronger directional signal about economic activity amid the push-and-pull of consumer spending and business investments. While underlying economic conditions show resilience, the recession narrative is playing an important role in market psychology and investor expectations, as we see the sharp upward push in rates moderate more visibly.”