Mortgage rates decrease slightly after six weeks of rising
The 30-year fixed-rate mortgage averaged 6.66%
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The 30-year fixed-rate mortgage averaged 6.66% with an average 0.8 point as of Thursday, down from last week when it averaged 6.70%, according to Freddie Mac. A year ago at this time, the 30-year FRM averaged 2.99%.
The 15-year fixed-rate mortgage averaged 5.90% with an average 1.0 point, down from last week when it averaged 5.96%. A year ago at this time, the 15-year FRM averaged 2.23%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.36% with an average 0.3 point, up from last week when it averaged 5.30%. A year ago at this time, the 5-year ARM averaged 2.52%.
Houses under construction at the Norton Commons subdivision in Louisville, Ky., Fri., July 1, 2022. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
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"Mortgage rates decreased slightly this week due to ongoing economic uncertainty," said Sam Khater, Freddie Mac’s Chief Economist. "However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential homebuyers."
For sale by owner sign is displayed outside home in Northbrook, Ill., Wed., Sept. 21, 2022. (AP Photo/Nam Y. Huh)
Rapidly rising mortgage rates have more than doubled this year, pushing many prospective homebuyers out of the market.
Freddie Mac says that for a typical mortgage, borrowers who locked in at the higher end of the rate range during the past year would pay several hundred dollars more than borrowers who signed contracts at the lower end of the range.
Late last month, the Federal Reserve bumped its benchmark borrowing rate by another three-quarters of a point in an effort to constrain the economy, its fifth increase this year and third consecutive 0.75 percentage point increase.
The Fed’s aggressive action has decelerated a housing sector that — outside of the onset of the coronavirus pandemic — has been hot for years. Existing home sales have declined for seven straight months as the rising cost to borrow money puts homes out of reach for more people.
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The Associated Press contributed to this report.