Inflation and tightening policies take a toll on mortgage rates
Freddie Mac releases results of its weekly Primary Mortgage Market Survey
The 30-year fixed mortgage rate jumped to its highest point since April, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey showed that the 30-year fixed-rate home loan averaged 3.05% for the week ending October 14, up from 2.99% last week. It was 2.81% a year ago.
Freddie Mac chief economist Sam Khater said that the modest upswing was not a surprise as inflationary pressure continues to build up due to the ongoing pandemic and tightening monetary policy.
“Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth,” Khater said. “Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.”
The 15-year fixed-rate mortgage also increased this week, up by seven basis points to 2.30%. Last year, the 15-year mortgage rate was 2.35%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) posted a three-basis-point increase to 2.55%. A year ago at this time, it averaged 2.90%.
Related Posts
Skyrocketing rates lead to sharp decline in mortgage applications - Read The Story from October 23, 2023 »
Long-term mortgage rates show no sign of slowing - Read The Story from October 22, 2023 »
Mortgage rates in the US now at highest levels for two decades - Read The Story from September 30, 2023 »