Mortgage Rates Spike to Highest Level in Five Months, Home Affordability Hurdles Persist
Mortgage rates have reached their highest level in five months, according to Freddie Mac’s latest Primary Mortgage Market Survey. The average rate on the benchmark 30-year fixed mortgage jumped to 6.85%, up from last week’s reading of 6.72%. This marks the highest level on the 30-year loan since mid-July, when the rate was 6.89%.
The average rate on a 30-year loan was 6.61% a year ago, and the lowest rate this year was 6.08% at the end of September. The highest rate this year was 7.22% at the beginning of May.
Freddie Mac’s chief economist, Sam Khater, noted that while mortgage rates have increased for the second straight week, rebounding after a decline from earlier this month, the market remains plagued by an overwhelming undersupply of homes. A strong economy can help build momentum heading into the new year and potentially boost purchase activity.
The average rate on the 15-year fixed mortgage also climbed to 5.92% from 5.84% last week. One year ago, the rate on the 15-year fixed note averaged 5.95%.
