Mortgage rates continue to rise, but prospective homebuyers need not delay plan

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Mortgage rates continued to rise this week, but are estimated to average lower in a short period of time.

30-year fixed-rate mortgage averaged 5.66% with an average 0.8 point for the week ending Sep. 1, compared to 5.55% last week and 2.87% a year ago, according to the Freddie Mac Primary Mortgage Survey.

15-year fixed-rate mortgage averaged 4.98% with an average 0.8 point, up from 4.85% last week and 2.18% a year ago.

5-year Treasury indexed hybrid adjustable-rate mortgage averaged 4.51% with an average 0.4 point, up from 4.36% last week and 2.43% a year ago.

“The market’s renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago,” Chief Economist Sam Khater said.

“The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price growth deceleration,” Khater added.

However, 30-year fixed-rate mortgage may average 4.7% by 2022 and 4.5% by 2023, according to a report by government-sponsored lender Fannie Mae.

5-year Treasury indexed hybrid adjustable-rate mortgage may average 3.8% by 2022 and 3.9% by 2023, the report noted.