Mortgage rates rose for the fourth week in a row, amid uncertainty over whether the U.S. Federal Reserve will hike interest rates.
The 30-year fixed-rate mortgage averaged 7.49% as of October 5, according to data released by Freddie Mac
FMCC,
on Thursday.
It’s up 18 basis points from the previous week — one basis point is equal to one hundredth of a percentage point. Rates are also at the highest level since December 2000.
A year ago, the 30-year was averaging at 6.66%.
The average rate on the 15-year mortgage was 6.78%, up from 6.72% last week. The 15-year was at 5.9% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 7.7% as of Thursday afternoon.
What Freddie Mac said: “Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation,” he added.
What are they saying? “Mortgage rates at 23-year highs have continued to depress the housing market,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.
“Despite the recent jump in rates, we still anticipate that the 30-year fixed-rate mortgage will drop before the end [of] the year, providing some relief to prospective homebuyers heading into 2024,” he added.
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