Freddie Mac Reports a Continued Rise in Mortgage Rates, Nearing 7%
Mortgage rates inched closer to the 7% mark, hitting their highest levels in nearly six months, according to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS), released on January 2.
The 30-year fixed-rate mortgage (FRM) averaged 6.91% as of January 2, up slightly from last week’s 6.85%. A year ago, the rate stood at 6.62%. The 15-year FRM also saw an increase, averaging 6.13%, compared to last week’s 6.0% and 5.89% at the same time last year.
According to Realtor.com, “December saw the strongest seasonal slowdown of the residential real estate market in nearly two years, with homes standing unsold for an average of 70 days, up from 62 in November.
“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. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise.”
The rise in rates underscores ongoing challenges in housing affordability but hints at resilience in buyer demand as pending home sales show signs of growth despite the higher borrowing costs.
