Local mortgage activity drops as interest rates rise

County mortgage brokers said business has leveled off significantly as interest rates rise above 5 percent amid fears of inflation.

According to Freddie Mac, a 30-year, fixed-rate mortgage averaged 5.38 percent last week.

Comparatively, the 30-year rate was 4.82 percent during the week of May 21 and 4.78 the last week in April, the government-run mortgage company reported.

The seemingly inconsequential rise in rates has led to a "screeching halt in activity," locally, said George Matthews, owner of A-1 Mortgage in Annapolis. When rates hovered near 4.7 percent just a few weeks ago, Matthews "didn't...