Economic Volatility Causing Mortgage Rate Volatility

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Freddie Mac’s weekly Primary Mortgage Market Survey report released Thursday showed two decreases in mortgage rates and one increase, signaling that economic volatility is causing mortgage rate volatility, according to company officials. “As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue,” said Sam Khater, Freddie Mac’s chief economist. A year ago at this time, the 30-year FRM averaged 3%. A year ago at this time, the 5-year ARM averaged 2.59%.

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