Building Momentum for Mortgage Rates
There is a building momentum in mortgage rates, with the average 30-year, fixed rate up for the second straight week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®). The average 30-year fixed increased to 4.6 percent, up from 4.54 percent the prior week. The average 15-year, fixed, meanwhile, rose to 4.08 percent, up from 4.02 percent, and the average five-year, Treasury-indexed hybrid adjustable rose to 3.93 percent, up from 3.87 percent.
“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” says Sam Khater, chief economist at Freddie Mac. “Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months. Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close.”