Mortgage Rates Continue to Rise, Freddie Mac Says

By Will Feuer

Mortgage rates continued to rise in the latest week, with the 30-year fixed-rate mortgage edging further above 5%, according to housing-finance agency Freddie Mac.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage rose to 5.30% from 5.27% last week. A year ago this week, the average rate was 2.94%.

Average 15-year rates were 4.48%, down from 4.52% a week ago and 2.26% a year ago.

The average rate on a five-year Treasury-indexed hybrid adjustable-rate mortgage, or ARM, was 3.98%, up from 3.96% last week. A year ago, the five-year ARM averaged 2.59%.

"Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third as compared to a year ago," Freddie Mac Chief Economist Sam Khater said. "Several factors are contributing to this dynamic, including the large wave of first-time homebuyers looking to realize the dream of homeownership. In the months ahead, we expect monetary policy and inflation to discourage many consumers, weakening purchase demand and decelerating home price growth."

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(END) Dow Jones Newswires

May 12, 2022 10:14 ET (14:14 GMT)

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