The average rate is once again approaching 6.5%
of ConsumerAffairsTheres more bad news for home buyers: Freddie Macs Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) increased again this week, averaging 6.44%.
The 30-year fixed-rate mortgage increased for the third consecutive week, moving closer to 6.5%, said Sam Khater, Freddie Macs chief economist.
In general, higher rates reflect the strength in the economy that is supportive of the housing market. But notably, as compared to a year ago, rates are more than one percentage point lower and potential homebuyers can stand to benefit, especially by shopping around for the best quote as rates can vary widely between mortgage lenders.
Because of the increase in mortgage rates, mortgage applications tanked last week, plunging 17% from the previous week.
Mortgage rates moved higher for the third consecutive week, with the 30-year fixed rate increasing to 6.52%, its highest level since August, said Joel Kan, MBAs deputy chief economist.
The recent uptick in rates has put a damper on applications. Refinance applications fell 26% to their lowest level since August, with comparable drops in both conventional and government refinances.
But Kan said demand is holding up to an extent for prospective first-time buyers. FHA purchase applications were little changed despite the increase in rates because some first-time homebuyers remain in the market because of improving housing inventory conditions.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-10-17 16:20:46
