Mortgage rates rose this week after falling for six straight weeks

Dec 29, 2022, 10:15 AM
Homes near Jackson, Wyoming, US, on Friday, Dec. 16, 2022. (Natalie Behring/Bloomberg/Getty Images ...
Homes near Jackson, Wyoming, US, on Friday, Dec. 16, 2022. (Natalie Behring/Bloomberg/Getty Images via CNN)
(Natalie Behring/Bloomberg/Getty Images via CNN)

(CNN) — Mortgage rates rose this week, their first increase after falling for six consecutive weeks, according to the latest data from Freddie Mac.

The 30-year fixed-rate mortgage averaged 6.42% in the week ending Dec. 29, up from 6.27% the week before and capping a rollercoaster year for homebuyers that saw mortgage rates more than double in less than 12 months.

“The housing market remains in the doldrums with declining sales, inventory and prices,” said Sam Khater, Freddie Mac’s chief economist.

“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,” he added.

One year ago, the 30-year fixed rate was 3.11% — and few predicted that rates of 6% would come as a relief, having fallen from over 7%. Home shoppers have watched their buying power evaporate, with higher rates adding hundreds of dollars onto what they would pay each month.

Has inflation finally hit its peak?

Mortgage rates rose throughout most of 2022 amid the Federal Reserve’s unprecedented campaign of harsh interest rate hikes aimed at taming soaring inflation. But mortgage rates have tumbled in the last several weeks, following various data points that showed inflation may have finally reached its peak.

“The Freddie Mac fixed rate for a 30-year loan followed in the footsteps of the 10-year Treasury, which rose from 3.45% at the midpoint of the month to 3.86% yesterday,” said George Ratiu, senior economist and manager of economic research at

“With an eye toward the new year, investors are weighing this month’s positive economic data against the Federal Reserve’s continued monetary tightening,” he added. “On one hand, third quarter gross domestic product was revised upward twice, the job market remains on solid footing, inflation has been moderating, and consumer confidence hit the highest point in eight months. On the other hand, corporate executives are feeling more bearish on account of higher borrowing costs, with the perceived risk of recession rising. Concerns about the business outlook could prompt more company leaders to freeze hiring, or resort to broader layoffs in 2023.”

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less-than-perfect credit will pay more than the average rate.

The-CNN-Wire™ & © 2022 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

Top Stories

National News

Saginaw Police K9 Cigan sits behind a table with evidence found inside a stolen car. (WNEM)...
Anna Kathman

Stolen vehicle, multiple drugs located by Michigan K9 officer

Saginaw Police said two suspects are behind bars after a stolen vehicle was located during a traffic stop by a K9 officer.
18 hours ago
A 29-year old woman has been arrested after allegedly posing as a teenager and attending classes at...
Kiely Westhoff and Zoe Sottile, CNN

29-year-old woman posed as high school teen facing charges in New Jersey, police say

A 29-year-old New Jersey woman is facing charges over claims she used false government documents in a ploy to pose as a teenager at a high school, according to police.
18 hours ago
Former U.S. President Donald Trump speaks during an election night event at Mar-a-Lago on November ...
Meg Kinnard and Michelle L. Price

Trump says beating of Nichols ‘never should have happened’

Former President Donald Trump says the footage of the brutal beating of Tyre Nichols by five Memphis police officers is “horrible” and that the attack “never should have happened.”
2 days ago
One the of climbers in the training camp climbing a wall. (KSL-TV's Alex Cabrero)...
Alex Cabrero

USA Climbing Camp for Paris 2024 begins in Salt Lake City

As the Summer 2024 Olympic Games draws closer, those athletes looking to participate begin their training. 
2 days ago
MEMPHIS, TENNESSEE - SEPTEMBER 7:  Police investigate the scene of a reported carjacking reportedly...
Adrian Sainz

Memphis police disband unit that fatally beat Tyre Nichols

The Memphis Police Department has disbanded the special unit whose officers beat to death motorist Tyre Nichols
2 days ago
Demonstrators participate in a protest against the police killing of Tyre Nichols on January 27, 20...
Adrian Sainz, Associated Press

Memphis authorities release video in Tyre Nichols’ death

Video showing five Memphis officers beating Tyre Nichols, a Black man, has been made public.
3 days ago

Sponsored Articles

Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t Let a Ransomware Attack Get You Down | Protect Your Workplace Today with Cyber Insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Mortgage rates rose this week after falling for six straight weeks