Freddie Mac: Some mortgage rates back up after weeks of declines

After dropping for five consecutive weeks, 30-year mortgage rates climbed the last week of the year.

According to Freddie Mac’s Primary Mortgage Market Survey released Dec. 29, the average 30-year fixed-rate mortgage was 6.42%, up from 6.27% the previous week.

The increase wasn’t much, but it broke a recent streak of drops after the 30-year fixed rate hit 7.08% in October, the first time the rate topped 7% since April 2002.

As the 30-year rate rose, the average 15-year-fixed rate mortgage dropped — barely — to 5.68% from 5.69% from the previous week.

Both 15-year and 30-year mortgage rates remain far higher than where they were a year ago and the effect of that is evident in the slowdown of the housing market.

Sam Khater, Freddie Mac’s chief economist, says in the report that “the declines in sales and deceleration in home prices began swiftly earlier in 2022 but have moderated more recently. While the intensity of weakness is moderating, the market continues to decline and forward leading indicators suggest housing will remain weak throughout the winter.”

The average 15-year fixed-rate mortgage was 2.33% a year ago. The average 30-year-fixed rate mortgage was 3.11% a year ago.