Mortgage Rates Breach 7% Again

Mortgage rates, or interest rates on home loans, increased and breached the 7% mark again, reflecting "tightening monetary policy", 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 7.08 percent for the week ending November 10, 2022, up from 6.95 percent last week. A year ago at this time, the average rate was 2.98 percent.

The 15-year FRM this week averaged 6.38 percent, up from 6.29 percent last week. A year ago at this time, the 15-year FRM averaged 2.27 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 6.06 percent, up from 5.95 percent last week. It was 2.53 percent a year ago.

"As the housing market adjusts to rapidly tightening monetary policy, mortgage rates again surpassed seven percent," said Sam Khater, Freddie Mac's Chief Economist. "The housing market is the most interest-rate sensitive segment of the economy, and the impact rates have on homebuyers continues to evolve. Home sales have declined significantly and, as we approach year-end, they are not expected to improve."

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