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Average long-term mortgage rates retreat slightly this week

Matt Ott
Associated Press

Washington – Average long-term U.S. mortgage rates came back down slightly this week after the key 30-year loan rate jumped nearly a quarter point last week.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate fell to 5.13% from 5.22% last week. Last year at this time, the rate stood at 2.86%.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, inched down to 4.55% from 4.59% last week. One year ago, it was 2.16%.

Rapidly rising interest rates – which add hundreds of dollars to monthly mortgage payments – have pushed many potential homebuyers to the sideline this year, cooling the once red-hot housing market.

The Federal Reserve has increased its main borrowing rate four times this year in an effort to combat four-decade high inflation.

More: US home sales fell again in July as housing slowdown deepens