The 30-year fixed-rate mortgage (FRM) averaged 7.08% for the week of Nov. 10, according to the Primary Mortgage Market Survey from Freddie Mac. The 30-year FRM rose above 7% during the week of Oct. 27 before falling to an average of 6.95% last week.
“As the housing market adjusts to rapidly tightening monetary policy, mortgage rates again surpassed 7%,” says 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 home buyers continues to evolve. Home sales have declined significantly, and, as we approach year-end, they are not expected to improve.”
The 7.08% average for the 30-year FRM is more than 4 percentage points higher than the same week a year ago, when the 30-year FRM averaged 2.98%. The 15-year FRM averaged 6.38% for the week of Nov. 10, also more than 400 basis points higher on a year-over-year basis. The 15-year FRM averaged 2.27% during the same period in 2021.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6.06% for the week of Nov. 10, compared with an average of 2.53% a year ago.
Mortgage applications for the week ending Nov. 4 were relatively unchanged from the previous week, marginally decreasing by 0.1%. The seasonally unadjusted Purchase Index fell 1% from the previous week, but it was 41% lower than the same week a year ago, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
“Mortgage rates edged higher last week following news that the Federal Reserve will continue raising short-term rates to combat high inflation,” says MBA vice president and deputy chief economist Joel Kan. “Purchase applications increased for the first time after six weeks of declines but remained close to 2015 lows, as home buyers remained sidelined by higher rates and ongoing economic uncertainty.”
According to the MBA, the ARM share of activity increased to 12% of total mortgage applications.
