Mortgage rates increased again this week, ending the year slightly higher than where they began. The average 30-year fixed-rate mortgage rate rose to 6.85%, up from 6.72% a week earlier, according to Freddie Mac data.
The 15-year mortgage rate also increased, reaching 6%, from 5.92%. Sam Khater, Freddie Mac’s chief economist, attributed the rise in rates to a rebound after an earlier decline and said that while new home sales are showing improvement, the market is still plagued by a shortage of homes.
The latest increase in rates follows the Federal Reserve’s interest rate cut last week, which sent signals that benchmark interest rates will stay higher for longer. This news has contributed to the rise in mortgage rates, which had spent much of 2024 in the 6% to 7% range. Uncertainty about President-elect Donald Trump’s economic policies and the Fed’s slower rate-cutting timeline have pushed rates closer to 7%.
Source: https://finance.yahoo.com/news/mortgage-rates-rise-again-finishing-the-year-at-685–just-about-the-way-they-started-170707172.html