Freddie Mac Chief Economist Explains Rising Mortgage Rates in Last Week

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The 30-year fixed-rate mortgage averaged 3.92% with an average 0.8 point for the week ending February 17, 2022, up from last week when it averaged 3.69%, shows Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the 30-year FRM averaged 2.81%.

“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” states Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage is nearing four percent, 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.”

The 15-year fixed-rate mortgage averaged 3.15% with an average 0.8 point, up from last week when it averaged 2.93%. A year ago at this time, the 15-year FRM averaged 2.21%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98% with an average 0.3 point, up from last week when it averaged 2.80%. A year ago at this time, the 5-year ARM averaged 2.77%.

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