US Economy: Mortgage Rates Climb Ahead of New Year, Impacting Demand
A recent report from Freddie Mac revealed that mortgage rates rose to 6.72%, up from last week’s reading of 6.6%. This is comparable to the rate at which they were a year ago, which stood at 6.67%. Sam Khater, Freddie Mac’s chief economist, notes that mortgage rates have generally hovered between 6 and 7 percent over the past 12 months. Despite this, some homebuyers are now more willing to move forward with purchasing a home, resulting in increased purchase activity.
The average rate for the 15-year fixed mortgage also rose, increasing from 5.84% to 5.92%. This is roughly in line with the rate of 5.95% seen a year ago.
The Mortgage Bankers Association (MBA) reported a 0.7% decline in mortgage applications, mainly due to the rise in rates. Refinancing applications specifically fell by 3%.