‘Vulnerable time for the housing market’: Mortgage rates are now double what they were a year ago, and will weigh on house prices

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Freddie Mac reported that the 30-year fixed-rate mortgage averaged 5.66%. One basis point is equal to one hundredth of a percentage point.

The 30-year has been at the highest level since June.

The 15-year fixed-rate mortgage increased in the past week. The rate on the mortgage went up from the previous week.

Freddie Mac said in a statement that the market perception of a more aggressive monetary-policy stance has driven mortgage rates up to almost double what they were a year ago.

The sellers are recalibrating their prices due to lower purchase demand.

— Sam Khater, chief economist at Freddie Mac

He said that the increase in rates comes at a vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand.

The data shows that buyers are pulling back because of higher rates and economic uncertainty.

The sellers are having more difficulty. There are more days on the market and listings are taking price cuts. There are more homes for sale.

Home-price appreciation is expected to slow to 5% by the end of this year and into the next, according to the National Association of Realtors.

Bank of America is trying to make ownership more affordable for first-time home buyers in specific Black, African-American and Hispanic-Latino neighborhoods.

Charlotte, Dallas, Detroit, Los Angeles, and Miami are included.

Discuss the housing market. You can write to Aarthi at marketwatch.com.