Mortgage rates tick higher again as recession fears loom
CNN/Stylemagazine.com Newswire | 7/21/2022, 10:12 a.m.
A "For Sale" sign is seen outside a house in Hercules, California, on May 31. Mortgage rates ticked higher for the second week in a row.
Mandatory Credit: David Paul Morris/Bloomberg/Getty Images
Originally Published: 21 JUL 22 10:12 ET
By Anna Bahney, CNN Business
(CNN) -- Mortgage rates ticked higher for the second week in a row as more economic indicators flashed warning signs of an impending recession.
The 30-year fixed-rate mortgage averaged 5.54% in the week ending July 21, up from 5.51% the week before, according to Freddie Mac. That is significantly higher than this time last year when it was 2.78%.
Rates have risen sharply since January, hitting a year high of 5.81% in mid-June. But since then, economic concerns have made rates more volatile. Rates dropped the first week in July, notching the biggest one-week dip since 2008.
"The housing market remains sluggish as mortgage rates inch up for a second consecutive week," said Sam Khater, Freddie Mac's chief economist. "Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably."
This is a developing story and will be updated.
