The change has reversed the trend toward improving housing affordability
of ConsumerAffairs
Freddie Mac reports its Primary Mortgage Market Survey shows a surge in the 30-year fixed-rate mortgage, which this week averages 6.32%.
Following the release of a stronger-than-expected September jobs report, the 30-year fixed rate mortgage saw the largest one-week increase since April, said Sam Khater, Freddie Macs chief economist.
However, we should remember that the rise in rates is largely due to shifts in expectations and not the underlying economy, which has been strong for most of the year. Although higher rates make affordability more challenging, it shows the economic strength that should continue to support the recovery of the housing market.
Mortgage rates are tied to the yield on the Treasurys 10-year bond. That yield surpassed 4% this week for the first time since the spring. Yields are rising because the government is having to pay higher rates to sell bonds.
After dropping to a low of 6.09% two weeks ago, the rise in mortgage rates will reverse what had been an improvement in housing affordability.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-10 19:05:22
