Average US long-term mortgage rates retreat to 5.3%

By MATT OTT
AP Business Writer

WASHINGTON (AP) — Average long-term U.S. mortgage rates retreated this week just as the Federal Reserve announced another big rate hike in its bid to get four-decade high inflation under control. Mortgage buyer Freddie Mac reported Thursday that the 30-year rate fell back to 5.3% from 5.54% last week. One year ago the average 30-year rate was 2.8%. The Fed on Wednesday ratcheted up its main borrowing rate by three-quarters of a point, the second such increase in less than two months. Higher borrowing rates have discouraged house hunters and cooled what was a red-hot housing market.