Mortgage Rates Inch Up

(RTTNews) - Mortgage rates, or interest rates on home loans, rose slightly compared to last week, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 2.88 percent for the week ending September 23, 2021, up from 2.86 percent last week. A year ago at this time, the average rate was 2.90 percent.

The 15-year FRM this week averaged 2.15 percent, up from 2.12 percent last week. A year ago at this time, the 15-year FRM averaged 2.40 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.43 percent, down from 2.51 percent last week. It was 2.90 percent a year ago.

"The slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets," said Sam Khater, Freddie Mac's Chief Economist. "This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place, despite the increasing dispersion of inflation across different consumer goods and services."

Khater continued, "On the housing front, homebuyers continue to snap up available inventory, which has improved modestly, and home price growth is moderating. However, the next few months will be choppy as several home builders are signaling that they are going to deliver less supply amid labor and materials shortages."