It was another historic year for mortgage rates. However, unlike the historic drop in 2021, the historic jump in 2022 was not great for consumers in the short run. The 30-year fixed is down from the seven handle we saw in October. However, rates still remain at levels we had not previously seen in 15 years, according to the weekly survey from Freddie Mac.
- The 30-year fixed for the first time in 8 weeks jumped week-over-week to close out 2022 at 6.42%. This is 15 basis points higher than last week and puts rates officially up 320 basis points from the start of the year when rates averaged 3.22% on January 6th.
- The 15-year fixed ended the year up 325 basis points after a slight weekly drop to 5.68%.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, did not mince words as we close out 2022. “The housing market remains in the doldrums with declining sales, inventory and prices…The declines in sales and deceleration in home prices began swiftly earlier in 2022 but have moderated more recently. While the intensity of weakness is moderating, the market continues to decline and forward leading indicators suggest housing will remain weak throughout the winter.”