Mortgage Rates Continues To Rise, Reaches Highest Level Since 2018

(RTTNews) - Mortgage rates, or interest rates on home loans, continues to rise amid elevated inflation, reaches highest level since 2018, according to mortgage provider Freddie Mac (FMCC.OB).

"Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation," said Sam Khater, Freddie Mac's Chief Economist. "Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate. Our research indicates that borrowers could save an average of $1,500 over the life of a loan by getting one additional rate quote and an average of about $3,000 if they get five quotes."

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 5.89 percent for the week ending September 8, 2022, up from 5.66 percent last week. A year ago at this time, the average rate was 2.88 percent.

The 15-year FRM this week averaged 5.16 percent, up from 4.98 percent last week. A year ago at this time, the 15-year FRM averaged 2.19 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 4.64 percent, up from 4.51 percent last week. It was 2.42 percent a year ago.