Mortgage Rates Rise; 30-Year FRM at 6.90%
Freddie Mac economist: Strong economic and inflation data “caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates.”
MCLEAN, Va. – The 30-year fixed-rate mortgage (FRM) averaged 6.90%, this week, up from last week’s average of 6.77%, according to Freddie Mac.
“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. “Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market.
“The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”
A year ago at this time, the 30-year FRM averaged 6.50%.
Meanwhile, the 15-year fixed-rate mortgage averaged 6.29% this week, up from last week when it averaged 6.12%. A year ago at this time, the 15-year FRM averaged 5.76%.
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