Mortgage Rates Continue Ascent Amid Inflation Battle

By Dean Seal

Mortgage rates rose again this week as the Federal Reserve reaffirmed its commitment to reducing inflation through policy, and the dispersion of rates also has increased, housing-finance agency Freddie Mac said.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage rose to 5.89% from 5.66% last week. A year ago, the average rate was 2.88%.

Average 15-year rates were 5.16%, up from 4.98% last week, Freddie Mac said. A year ago, the 15-year fixed-rate mortgage rate averaged 2.19%.

The average rate on a five-year Treasury-indexed hybrid adjustable-rate mortgage, or ARM, was 4.64%, up from 4.51% last week. A year ago, the five-year ARM averaged 2.42%.

"Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy to combat elevated inflation," said Sam Khater, Freddie Mac's chief economist. "Not only are mortgage rates rising, but the dispersion of rates also has increased, meaning that borrowers can benefit from shopping around for a better rate. Our research indicates that borrowers could save an average of $1,500 over the life of a loan by getting one additional rate quote and an average of about $3,000 if they get five quotes."

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

September 08, 2022 10:15 ET (14:15 GMT)

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