U.S. mortgage rates rose for the fourth straight week to their highest level in two months, dealing a major blow to housing affordability.
The 30-year fixed-rate mortgage increased and averaged 6.94% as of Feb. 29, according to data released by Freddie Mac FMCC,
+0,92%
THURSDAY.
This is an increase of 4 basis points from the previous week – one basis point is one hundredth of a percentage point.
A year ago, the 30-year rate averaged 6.65%.
The average 15-year mortgage rate was 6.26%, up from 6.29% last week. The 15 year was at 5.89% a year ago.
Freddie Mac’s weekly mortgage rate report is based on thousands of inquiries received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage loan.
Separate data from Mortgage News Daily shows the 30-year fixed-rate mortgage rate averaged 7.15% as of Thursday afternoon. The Mortgage Bankers Association survey found the 30-year interest rate was 7.04% as of Feb. 23.
What Freddie Mac said: “The recent boomerang in rates has dampened already hesitant homebuyer momentum heading into spring, a historically busy season for home buying,” Sam Khater, chief economist at Freddie Mac, said in a statement. .
“While sales of newly constructed homes are trending in a positive direction, high interest rates and prices continue to pose affordability challenges that could leave potential buyers behind,” he added.
What do they say? “Higher-than-expected inflation and employment data maintain upward pressure on mortgage rates,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.
“And an insufficient volume of existing homes for sale in many markets makes it even more difficult for many potential buyers to enter the market,” he added.
2024-02-29 17:55:00
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