Mortgage rates have increased above 7% for the first time since May, according to Freddie Mac’s latest Primary Mortgage Market Survey. The average rate on a 30-year fixed mortgage jumped to 7.04%, up from last week’s reading of 6.93%. This marks the fifth consecutive weekly increase in mortgage rates.
The chief economist at Freddie Mac attributes the rise in rates to the underlying strength of the economy. Sam Khater stated, “Mortgage rates ticked up for the fifth consecutive week and crossed seven percent for the first time since May of 2024.” The increase is adding pressure on the stagnant housing market.
In other news, the average rate on a 15-year fixed mortgage climbed to 6.27%, from 6.14% last week. This represents a significant jump from one year ago, when the rate averaged 5.76%.
Source: https://www.foxbusiness.com/economy/mortgage-rates-january-16-2025