Mortgage rates have risen for the third consecutive week, reaching their highest levels since July. This increase is adding further pressure to the already sluggish housing market.
According to the latest Primary Mortgage Market Survey by Freddie Mac, the average rate on the 30-year fixed mortgage has climbed to 6.91%, up from 6.85% last week. A year ago, the average rate for a 30-year loan was 6.62%.
Freddie Mac's chief economist, commenting on the rise in rates, noted that they are now just below seven percent, marking the highest point in nearly six months. He also highlighted that compared to the same period last year, rates are significantly higher, contributing to ongoing affordability challenges in the market.
Additionally, the average rate on the 15-year fixed mortgage has increased to 6.13% from 6.0% in the previous week. A year ago, the rate for a 15-year fixed note stood at 5.89%.
These rate hikes are likely to impact potential homebuyers, making it more expensive to borrow money for a home purchase. Higher mortgage rates can deter buyers and slow down the housing market activity, potentially leading to a decrease in demand for homes.
