Mortgage Rates Reach Highest Point in Nearly Six Months, Further Hindering Housing Market
Mortgage rates have reached their highest point in nearly six months, climbing to 6.91% for a third consecutive week. According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on the benchmark 30-year fixed mortgage has jumped from last week’s reading of 6.85%. In comparison, the average rate on a 30-year loan was 6.62% a year ago.
The 30-year fixed-rate average is now approaching 7%, with the 15-year fixed-rate average climbing to 6.13% from 6.0% last week. One year ago, the rate on the 15-year fixed note averaged 5.89%.
The increase in mortgage rates is expected to further hinder demand in the already-stagnant housing market. “Inching up to just shy of seven percent, mortgage rates reached their highest point in nearly six months,” said Sam Khater, Freddie Mac’s chief economist. “Compared to this time last year, rates are elevated and the market’s affordability headwinds persist.”
