Mortgage rates continue to rise after Fed's key rate decision

Outside view of a bank with American flag

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30-year fixed-rate mortgage averaged 6.29% with an average 0.9 point for the week ending Sep. 22, up from last week when it averaged 6.02% and higher than 2.88% a year ago, according to the Freddie Mac Primary Mortgage Survey.

15-year fixed-rate mortgage averaged 5.44% with an average 1.0 point, up from last week when it averaged 5.21% and 2.15% a year ago.

5-year Treasury indexed hybrid adjustable-rate mortgage averaged 4.97% with an average 0.4 point, up from last week when it averaged 4.93% and 2.43% a year ago.

"The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield's jump to its highest level since 2011," Sam Khater, Freddie Mac's chief economist, said.

The Federal Reserve has bolstered its key rate by 75 basis points, bringing it to 3.00%-3.25%, its highest point since 2008.

"The Fed now sees rates going to nearly 4.5% by year-end compared to a median projection of 3.4% in June and just 1.9% back in March," said Bankrate Chief Financial Analyst Greg McBride.

Mortgage applications also rose for the first time in six weeks.

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