The average 30-year, fixed mortgage is nearing 5 percent, leaping 19 basis points to 4.90 percent this week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®)—the highest it’s been in seven years.
The average 15-year, fixed mortgage, at the same time, jumped to 4.29 percent from 4.15 percent the prior week, and the five-year, Treasury-indexed hybrid adjustable mortgage rose to 4.07 percent, from 4.01 percent the prior week.
“Rising rates paired with high and escalating home prices is putting downward pressure on purchase demand,” says Sam Khater, chief economist at Freddie Mac. “While the monthly payment remains affordable due to the still-low mortgage rate environment, the primary hurdle for many borrowers today is the down payment, and that is the reason home sales have decreased in many high-priced markets.”
According to the National Association of REALTORS® (NAR), activity in August declined overall, but particularly out West, where there was an 11.3 percent dive in pending sales year-over-year.
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