As Mortgage Rates Stay Up, Lenders and Brokers Need to Get ‘Creative’

Source: Market Scale — 

Freddie Mac’s weekly averages since July 14 have been volatile, with spikes and dips in 30-year fixed, 15-year fixed and 15-year adjustable mortgage rates. But even with some short term relief after August 4’s numbers brought rates below 5% for the first time since April 2022, the last four weekly averages have stayed in line with the overall trend for 2022: mortgage rates are net going up and a looming recession isn’t helping.

Numbers from July 14, 21 and 28 shattered much of the industry’s short-term optimism after a rate slide in May. The 30-year fixed mortgage rate hit 5.51% on July 14, a sharp increase from the same time last year where the 30-year fixed was 2.88%. That 2.88% rate was closest to the lowest a 30 year mortgage has ever been, according to Freddie Mac numbers. In those same July 14 averages, the 15-year fixed rate hit 4.67%, up from 2.22% year-over-year.