Freddie Mac – Mortgage Rates Rise as Inflation Worries Ease

Freddie Mac Mortgage Rates – August 11, 2022

What Happened to Mortgage Rates This Week:

The Freddie Mac fixed rate for a 30-year loan resumed the seesawing trend of the past few weeks, with another rebound. Rates rose to 5.22% as the latest consumer price data indicated an easing of inflationary pressures. With investors welcoming this positive development, the 10-year Treasury moved higher in the first half of the week. Markets are seeking more certainty around the economic outlook, as incoming data continue to highlight a steady level of business activity and consumer spending. While concerns of a recession remain elevated, August seems to be offering a slight breather.

Freddie Mac - historical mortgage rates graph

What it Means:

Real estate markets continue on the path toward rebalancing. The inventory of homes for sale increased solidly in July, moving toward levels not seen since mid-2020. With more available properties and less competition, more homeowners are beginning to adjust to the new reality and resorting to price cuts to incentivize buyers. The share of listed homes with price reductions reached 19% in July, closing in on levels we haven’t seen since 2017. Moreover, median prices retreated from June’s record-high, as the pace of growth moderated. These shifts point toward a welcome change for buyers who are still in the market. The upcoming fall season may offer an even better window of opportunity, as long as the inventory landscape continues improving, as we’ve seen in recent months.

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