But the average 30-year rate remains below 7%, at least for now
of ConsumerAffairs
Mortgage rates ticked back up this week. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.84 percent, a slight increase from last week, adding to the challenges for homebuyers.
Mortgage rates ticked back up this week, continuing to approach 7%, said Sam Khater, Freddie Macs Chief Economist. Heading into the holidays, purchase demand remains in the doldrums. While for-sale inventory is increasing modestly, the elevated interest rate environment has caused new construction to soften.
Last weeks pause in the rise in mortgage rates led to a flurry of mortgage applications. The Mortgage Bankers Association reports applications jumped 1.7% from the previous week.
Applications to refinance existing mortgages increased by 2% in one week and were 43% higher than at this time 12 months ago.
The pickup in purchase applications was driven by conventional and FHA loans, with FHA purchase applications seeing a 7% increase, said Joel Kan, MBAs deputy chief economist.
For-sale inventory has loosened in some markets and some potential buyers have been able to take advantage of increasing supply and lower FHA rates, which were down slightly in comparison to the conforming 30-year fixed rate. Refinance activity rose slightly last week, driven largely by a 10 percent increase in VA applications.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-21 17:47:04
