The 30 year fixed-rate mortgage averaged 5.7% for the week ending June 30, according to data released by Freddie Mac on Thursday. That is up 11 basis points from the previous week - one basis point is equal to one hundredth of a percentage point, or 1% of 1%.
The average rate on the 15 year fixed-rate mortgage fell 9 basis points to 4.83% over the past week. The 5 year Treasury-indexed hybrid mortgage averaged 4.5%, up 9 basis points from the previous week.
Sam Khater, chief economist at Freddie Mac, said in a press release that the rapid rise in mortgage rates was finally paused due to the countervailing forces of high inflation and the increasing possibility of an economic recession. He said that the pause should help the housing market rebalance and help buyers, slowing the growth of a seller's market to a more normal pace of home price appreciation. The 30 year rate was 2.98% the same time last year. As the cost of borrowing goes up, more mortgage rates are pushing would-be buyers to wait to buy homes. The increase in borrowing costs would be around $590 for an existing home priced at the median of $407,600, with a 10% down payment and a 30 year fixed-rate mortgage. Mortgage applications, a sign of demand, went up slightly for the week ending June 24 according to the Mortgage Bankers Association, as a result of refinances of conventional loans. The yield on the 10 year Treasury note TMUBMUSD 10 Y fell to 3.024% during the morning trading session.