Fixed-Rate Mortgage Climbs Above 6 Percent for First Time in 14 Years

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Freddie Mac’s Primary Mortgage Market Survey (PMMS) shows that the 30-year fixed-rate mortgage (FRM) averaged 6.02% with an average 0.8 point as of September 15, up from last week when it averaged 5.89%.

A year ago at this time, the 30-year FRM averaged 2.86%.

“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” comments Sam Khater, Freddie Mac’s chief economist. “Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large.”

The 15-year fixed-rate mortgage averaged 5.21% with an average 0.9 point, up from last week when it averaged 5.16%. A year ago at this time, the 15-year FRM averaged 2.12%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.93% with an average 0.2 point, up from last week when it averaged 4.64%. A year ago at this time, the 5-year ARM averaged 2.51%.

Image: “Housing – Real Estate – Up Arrow – Sales” by gfdnova1 is licensed under CC BY-SA 2.0

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