Mortgage Rates Rise as Home Sales Decline

By Will Feuer

Mortgage rates rose this week as home sales continue to decline and prices moderate from the highs seen over the past couple of years, housing-finance agency Freddie Mac said.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage rose to 5.55% from 5.13% last week. A year ago this week, the average rate was 2.87%.

Average 15-year rates were 4.85%, up from 4.55% a week ago, Freddie Mac said. A year ago, the average 15-year fixed-rate mortgage rate was 2.17%.

The average rate on a five-year Treasury-indexed hybrid adjustable-rate mortgage, or ARM, was 4.36%, down from 4.39% last week. A year ago, the five-year ARM averaged 2.42%.

"The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market," said Sam Khater, Freddie Mac's chief economist. "Home sales continue to decline, prices are moderating, and consumer confidence is low. But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market."

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

August 25, 2022 10:14 ET (14:14 GMT)

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