By Will Feuer

Mortgage rates rose in the second week of 2022, 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 3.45%, up from 3.22% last week. A year ago, the 30-year rate averaged 2.79%.

"This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains," Freddie Mac Chief Economist Sam Khater said. "The rise in mortgage rates so far this year has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand in the near future."

Fifteen-year mortgages had an average rate of 2.62%, up from 2.43% last week. Such mortgages had an average rate of 2.23% a year ago.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARMs, averaged 2.57%, up from 2.41% last week. A year ago, the average ARM was at 3.12%.

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

(END) Dow Jones Newswires

01-13-22 1014ET