Fixed mortgage rates march higher, demand for adjustable-rate loans jumps

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Fixed mortgage rates march higher, demand for adjustable-rate loans jumps
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Average rates for fixed-rate mortgages rose again this week while demand for adjustable rate mortgages rose, signaling that prospective buyers are looking for relief from high payments.

The average rates for fixed mortgages continued their upward climb this week, accompanied by a marked rise in demand for adjustable loans as consumers seek relief from record-high monthly payments. Freddie Mac's latest Primary Mortgage Market Survey released Thursday shows that the average rate for the benchmark 30-year fixed-rate mortgage hit 7.57% this week, up from 7.49% last week and 6.92% a year ago. The rate for a 15-year fixed mortgage also rose, averaging 6.

Housing affordability in the U.S. reached an all-time low over the summer, and has continued to get worse as mortgage rates rise and home prices remain high due to a lack of homes for sale as more homeowners who are locked in a lower interest rates stay put rather than sell. As more would-be buyers continue to be priced out of today's expensive market, many are holding off on making a purchase until they can afford to do so.

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