‘Vulnerable Time for the Housing Market’: Mortgage Rates Rise to 5.66%, Double What They Were a Year Ago, and Will Likely Slow House-Price Appreciation

The 30-year fixed-rate mortgage averaged 5.66% as of Sept. 1, according to data released Thursday by Freddie Mac. That’s up 11 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

The 30-year is at the highest level since June, when rates hit 5.81% the week of June 23.

The average rate on the 15-year fixed-rate mortgage rose 13 basis points over the past week to 4.98%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.51%, up 15 basis points from the prior week.

“The market’s renewed perception of a more aggressive monetary-policy stance has driven mortgage rates up to almost double what they were a year ago,” Sam Khater, chief economist at Freddie Mac, said in a statement.

And the increase in rates comes at a “particularly vulnerable time for the housing market,” he added, “as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration.”

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