Originally Published: 21 JUL 22 10:12 ET

By Anna Bahney, CNN Business

(CNN) -- Mortgage rates ticked higher for the second week in a row as more economic indicators flashed warning signs of an impending recession.

The 30-year fixed-rate mortgage averaged 5.54% in the week ending July 21, up from 5.51% the week before, according to Freddie Mac. That is significantly higher than this time last year when it was 2.78%.

Rates have risen sharply since January, hitting a year high of 5.81% in mid-June. But since then, economic concerns have made rates more volatile. Rates dropped the first week in July, notching the biggest one-week dip since 2008.

"The housing market remains sluggish as mortgage rates inch up for a second consecutive week," said Sam Khater, Freddie Mac's chief economist. "Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably."

This is a developing story and will be updated.