: Mortgage rates tick back up above 5%, another challenge for first-time home buyers

by | Aug 11, 2022 | Stock Market

The 30-year fixed-rate mortgage averaged 5.22% as of August 11, according to data released by Freddie Mac on Thursday — up 23 basis points from the previous week. One basis point is equal to one hundredth of a percentage point, or 1% of 1%. The average rate on the 15-year fixed-rate mortgage rose 33 basis points over the past week to 4.59%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.43%, up 18 basis points from the prior week.

“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,” Sam Khater, the chief economist at Freddie Mac, said in a statement.  “Declines in purchase demand continue to diminish while supply remains fairly tight across most markets,” he added. “The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer.” Elevated home prices continue to be a challenge for first-time buyers who may have experienced a bout of relief when rates dipped below 5% last week. According to a separate report from the National Association of Realtors also released Thursday, 80% of U.S. metros saw their median single-family existing home sales price increase by double digits from the previous year. The price of a median single-fami …

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