With the Average Mortgage Rate Above 6 Percent, Housing Market Faces Challenges

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The results of Freddie Mac’s Primary Mortgage Market Survey (PMMS) show that the 30-year fixed-rate mortgage (FRM) averaged 6.29% with an average 0.9 point as of September 22, up from last week, when it averaged 6.02%.

A year ago at this time, the 30-year FRM averaged 2.88%.

“The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” observes Sam Khater, Freddie Mac’s chief economist. “Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels.”

The 15-year fixed-rate mortgage averaged 5.44% with an average 1.0 point, up from last week when it averaged 5.21%. A year ago at this time, the 15-year FRM averaged 2.15%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.97% with an average 0.4 point, up from last week when it averaged 4.93%. A year ago at this time, the 5-year ARM averaged 2.43%.

Image: Aubrey Odom-Mabey on Unsplash

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