Mortgage Rates Nears 7% Mark

Mortgage rates, or interest rates on home loans, continues to rise, nearing 7% mark. However, the upward trajectory has slowed down compared to previous weeks, 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 6.94 percent for the week ending October 20, 2022, up from 6.92 percent last week. A year ago at this time, the average rate was 3.09 percent.

The 15-year FRM this week averaged 6.23 percent, up from 6.09 percent last week. A year ago at this time, the 15-year FRM averaged 2.33 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 5.71 percent, down from 5.81 percent last week. It was 2.54 percent a year ago.

"Mortgage rates slowed their upward trajectory this week," said Sam Khater, Freddie Mac's Chief Economist. "The 30-year fixed-rate mortgage continues to remain just shy of seven percent and is adversely impacting the housing market in the form of declining demand. Additionally, homebuilder confidence has dropped to half what it was just six months ago and construction, particularly single-family residential construction, continues to slow down."

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