For the week ending August 2, Freddie Mac announced 30-year fixed rates increased to 4.60% from 4.54% the week before. The average for 15-year loans rose to 4.08% and the average for five-year adjustables moved up 3.93%. A year ago, 30-year fixed rates averaged 3.93%. Attributed to Sam Khater, Chief Economist, Freddie Mac: "The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months.
Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months. Even with home price growth easing slightly in some markets, rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close." Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.