Mortgage rates, or interest rates on home loans, dropped from last week, but still above the 5 percent mark, according to mortgage provider Freddie Mac (FMCC.OB).
Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 5.13 percent for the week ending August 18, 2022, down from 5.22 percent last week. A year ago at this time, the average rate was 2.86 percent.
The 15-year FRM this week averaged 4.55 percent, down from 4.59 percent last week. A year ago at this time, the 15-year FRM averaged 2.16 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 4.39 percent, down from 4.43 percent last week. It was 2.43 percent a year ago.
"Inflation appears to be beyond its peak, which has stopped the rapid increase in mortgage rates that the housing market was experiencing earlier this year," said Sam Khater, Freddie Mac's Chief Economist. "The market continues to absorb the cumulative impact of the large price and rate increases that led to a plunge in affordability. As a result, over the rest of the year purchase demand likely will continue to drag, supply will modestly increase, and home price growth will decelerate."
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