Mortgage rates continue rapid ascent

The five-year Treasury-indexed hybrid adjustable-rate mortgage posted a 16-basis-point decline from the previous week, down to 4.35%. A year ago, the five-year ARM averaged 2.47%.

“Mortgage rates are volatile as economic growth slows due to fiscal and monetary drags,” said Freddie Mac chief economist Sam Khater. “With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans.”

Home prices surged to their second highest level in the second quarter, according to Fannie Mae. The annual price growth of single-family homes is running at a 19.4% pace, up 4.3% from the previous quarter.

Read more: US mortgage application demand continues to cool

Meanwhile, the Mortgage Bankers Association expects refinance loan applications to remain depressed due to rising mortgage rates. Overall, mortgage application activity was down 1.7% week over week.