By Will Feuer


Mortgage rates rose again in the latest week, the fourth week in a row that rates have increased, according to government mortgage-finance company Freddie Mac.

In the week ending Thursday, the average 30-year fixed-rate mortgage had an interest rate of 3.56%, up from 3.45% last week. A year ago, the 30-year rate averaged 2.77%.

Expectations that the Federal Reserve will raise interest rates multiple times this year are driving increases in mortgage rates, which are closely tied to the 10-year U.S. Treasury.

"Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and financial markets adjusted to anticipated changes in monetary policy that will combat inflation," Freddie Mac Chief Economist Sam Khater said. "As a result of higher mortgage rates, purchase demand has modestly waned in advance of the spring homebuying season. However, supply remains near historically tight levels and home prices remain high, keeping the market competitive."

Fifteen-year mortgages had an average rate of 2.79% in the latest week, up from 2.62% last week. Such mortgages had an average rate of 2.21% a year ago.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, averaged 2.6%, up from 2.57% last week. A year ago, the average ARM was at 2.8%.


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

01-20-22 1014ET