Mortgage Rates Drop Sharply as Recession Fears Rise, Freddie Mac Says
July 07 2022 - 9:29AM
Dow Jones News
By Dean Seal
Mortgage rates declined sharply this week, with the 30-year
fixed-rate mortgage sinking back to mid-May levels as fears of an
oncoming recession creep higher, according to housing-finance
agency Freddie Mac.
In the week ending Thursday, the average rate on a 30-year
fixed-rate mortgage fell to 5.30% from 5.70% last week. A year ago
this week, the average rate was 2.90%.
Average 15-year rates were 4.45%, down from 4.83% a week ago. A
year ago, the average 15-year fixed-rate mortgage rate was
2.20%.
The average rate on a five-year Treasury-indexed hybrid
adjustable-rate mortgage, or ARM, was 4.19%, up from 4.50% last
week. A year ago, the five-year ARM averaged 2.52%.
"Over the last two weeks, the 30-year fixed-rate mortgage
dropped by half a percent, as concerns about a potential recession
continue to rise," said Sam Khater, Freddie Mac's chief economist.
"While the drop provides minor relief to buyers, the housing market
will continue to normalize if home price growth materially slows
due to the combination of low housing affordability and an expected
economic slowdown."
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
July 07, 2022 10:14 ET (14:14 GMT)
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