The 30-year mortgage averaged 5.22%, but there are signs housing is stabilizing

Mortgage rates climb above 5% once again

Does a slowing housing market mean homes will get any cheaper? ReplayMore Videos ... (16 Videos)Does a slowing housing market mean homes will get any cheaper? Online shopping prices are starting to ease. Here's why that's significantHere's how the Inflation Reduction Act could affect you'Jaw-dropping number:' Ex Obama economic adviser on the jobs reportJuly jobs report doubles expectationsEconomist explains how the energy and health care bill will lower inflationWhat is a recession?Is the US in a recession? Hear what Jerome Powell thinks'I don't want to go bankrupt': High inflation leaves little room for unexpected costsFood bank demand skyrockets as cash-strapped Americans seek help over inflationHear Goldman Sachs CEO's message to the Biden administrationProducts on the shelves getting smaller? You can blame 'shrinkflation'What the country's largest gathering of truckers has to say about the economyAmid inflation, economist warns avoiding recession won't be 'easy path'What can Biden actually do about inflation? History is a guideLook back at when the euro hit parity with the dollar in 2002 (CNN)Mortgage rates climbed above 5% again, after dipping below that threshold for the first time in months a week earlier. While the volatility in mortgage rates remains, there are signs that the housing market is starting to stabilize.

The 30-year fixed-rate mortgage averaged 5.22% in the week ending August 11, up from 4.99% the week before, according to Freddie Mac. That is significantly higher than this time last year when it was 2.87%.Rates rose sharply at the start of the year, hitting a year high of 5.81% in mid-June. But since then, concerns about the economy and the Federal Reserve's mission to combat inflation have made them more volatile. "Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market," said Sam Khater, Freddie Mac's chief economist. Earlier this week, the Consumer Price Index for July indicated the rate of inflation had started to slow, mainly due to lower energy costs. Housing, which comprises roughly a third of the basket of goods and services the CPI tracks, moderated slightly last month but still remains high.Read MoreOne reason home prices keep climbing is a lack of available homes for sale. "Supply remains fairly tight across most markets," said Khater. "The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer."

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