Jul 04, 2024

Mortgage Rates Rise, Approach 7% Threshold

Mortgage rates are nearing 7%, impacting affordability and market dynamics. Stay informed on the latest rate changes.

This week, mortgage rates have seen an increase, pushing closer to the 7% mark. Freddie Mac's Primary Mortgage Market Survey indicates that the average rate for a 30-year fixed mortgage rose to 6.95%, up from 6.86% last week and 6.81% a year ago. Rates for 15-year fixed mortgages also climbed to 6.25% from last week's 6.16%.

Overview of Current Mortgage Rates

This week, the mortgage landscape has experienced a noticeable uptick in rates, with the average rate on a 30-year fixed mortgage reaching 6.95%, edging closer to the 7% barrier. This rate increase represents a significant trend in the mortgage industry, affecting prospective home buyers and the overall housing market.

Details from Freddie Mac's Report

According to the latest data from Freddie Mac's Primary Mortgage Market Survey, there is a clear upward movement in mortgage rates. The average rate on the benchmark 30-year fixed mortgage has increased from 6.86% to 6.95% over the past week. Comparatively, the rate was slightly lower at 6.81% around this time last year.

Impact on 15-Year Fixed Mortgages

Similarly, the average rate for 15-year fixed mortgages has also risen this week, reaching 6.25% up from 6.16% just last week. This time last year, the rate was nearly stable at 6.24%, underscoring a gradual but steady increase over the year.

Implications for Homebuyers and the Housing Market

The continuous rise in mortgage rates is making home buying less affordable, which could slow down the housing market significantly. Higher rates increase the cost of borrowing, directly impacting monthly mortgage payments and overall home affordability for many Americans.

The Bottom Line

As mortgage rates continue to climb, both potential homebuyers and the housing market face challenges. This trend suggests a cautious environment for buyers, who may face higher costs and more competition for available homes. Keeping informed on rate changes can help buyers make well-timed decisions in a fluctuating market.

For more details on navigating these changes in mortgage rates, Find Down Payment Assistance Programs Near You.

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