Mortgage Rates Continue to Rise, Freddie Mac Says
February 17 2022 - 10:29AM
Dow Jones News
By Will Feuer
Mortgage rates climbed in the latest week, according to
government-backed housing-finance agency Freddie Mac.
In the week ending Thursday, the average rate on a 30-year
fixed-rate mortgage increased to 3.92% from 3.69% last week. A year
ago this week, the average rate was 2.81%.
Average 15-year rates were 3.15%, up from 2.93% a week ago and
2.21% a year ago.
The average rate on a five-year Treasury-indexed hybrid
adjustable-rate mortgage, or ARM, was 2.98%, up from 2.8% a week
ago and from 2.77% in the same period last year.
"Mortgage rates jumped again due to high inflation and stronger
than expected consumer spending," Freddie Mac Chief Economist Sam
Khater said.
"The 30-year fixed-rate mortgage is nearing 4%, reaching highs
we have not seen since May 2019. As rates and house prices rise,
affordability has become a substantial hurdle for potential
homebuyers, especially as inflation threatens to place a strain on
consumer budgets," he said.
Expectations that the Federal Reserve will raise interest rates
multiple times this year have also been driving increases in
mortgage rates, which are closely tied to the 10-year U.S.
Treasury.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
February 17, 2022 10:14 ET (15:14 GMT)
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