Mortgage Rates Rise Again as Inflation Persists

By Will Feuer

Mortgage rates rose again amid persistent inflation and signs of continued economic growth, according to government-backed housing-finance agency Freddie Mac.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage rose to 6.65% from 6.50% the prior week. A year ago, the average rate was 3.76%.

The average 15-year rate rose to 5.89% from 5.76% last week, Freddie Mac said. A year ago, the 15-year fixed-rate mortgage rate averaged 3.01%.

"As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent," said Sam Khater, Freddie Mac's Chief Economist.

"Lower mortgage rates back in January brought buyers back into the market. Now that rates are moving up, affordability is hindered and making it difficult for potential buyers to act, particularly for repeat buyers with existing mortgages at less than half of current rates," he said.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

March 02, 2023 12:14 ET (17:14 GMT)

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