"The housing market is incredibly rate-sensitive"
Mortgage rates have risen again after a few weeks of minor movement, with Freddie Mac reporting that the 30-year fixed-rate mortgage (FRM) averaged 5.23% as of June 09, up from 5.09% last week.
According to Freddie Mac’s Primary Mortgage Market Survey, the 15-year FRM averaged 4.38%, also up from last week’s 4.32%. Additionally, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.12%, up from 4.04%.
Back in June of the previous year, the 30-year FRM averaged 2.96%. The 15-year FRM averaged 2.23% and the five-year Treasury-indexed hybrid ARM averaged 2.55%.
Sam Khater, chief economist at Freddie Mac, said the increases seen this week came on the back of “increased economic activity and incoming inflation data.”
“The housing market is incredibly rate-sensitive, so as mortgage rates increase suddenly, demand again is pulling back,” Khater said. “The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home.”