14-Aug-22 A week after declining, home loan interest rates have changed direction. Benchmark 30-year fixed home loan interest rates rose to 5.22 percent on August 11 from 4.99 percent the previous week, reported Freddie Macs Primary Mortgage Market Survey.
A year ago, 30-year loans averaged 2.87 percent.
Fifteen-year fixed mortgages averaged 4.59 percent on August 11, up from 4.26 percent a week earlier. A year ago, 15-year loans averaged 2.15 percent.
The 30-year fixed rate went back up to well over five percent this week, a reminder that recent volatility remains persistent, said Sam Khater (left), Freddie Macs chief economist. Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market.
Khater noted that declines in purchase demand continue to diminish while supply remains fairly tight across most markets.
The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer, he said.