Mortgage Rates Hold Steady

Mortgage rates held steady this week, breaking a seven-week streak of increases.

According to Freddie Mac’s weekly Primary Mortgage Market Survey released today, 30-year fixed rate mortgages averaged 5.1%, down slightly from last week when it averaged 5.11%. A year ago at this time the 30-year FRM averaged at 2.98%.

According to the report the 15-year fixed-rate mortgage averaged 4.4%, up from 4.38%. A year ago at this time the 15-year FRM averaged 2.31%.

Also, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.78% up slightly from last week’s 3.75%. Last year at this time the 5-year ARM averaged 2.64%. 

“The combination of swift home price growth and the fastest mortgage rate increase in over 40 years is finally affecting purchase demand,” said Sam Khater, Freddie Mac’s chief economist. “Homebuyers navigating the current environment are coping in a variety of ways, including switching to adjustable-rate mortgages, moving away from expensive coastal cities, and looking to more affordable suburbs. We expect the decline in demand to soften home price growth to a more sustainable pace later this year.”