Compass International chairman and CEO Robert Reffkin discusses home innovation and affordability as mortgage rates rise on ‘Claman Countdown.’
Housing prices jumped this week to the highest level in nearly four months, mortgage buyer Freddie Mac said Thursday.
Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed an average rating on the bench. 30 year fixed mortgage increased to 6.22% compared to last week’s figure of 6.11%.
The average rate for a 30-year mortgage was 6.67% last year.
The average rate for a 30-year fixed-rate mortgage is XX to XX% this week, according to Freddie Mac. (Daniel Acker/Bloomberg via Getty Images)
“The 30-year mortgage rose to 6.22% this week but remains about half a point lower than the same time last year,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers are poised for a more affordable spring home buying season than last when the market saw an improvement in purchase applications and pending home sales.”
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The average 15-year fixed mortgage rate rose to 5.54% from last week’s reading of 5.5%.
Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics.
“Rising energy prices and renewed trade uncertainty have lifted inflation expectations, putting upward pressure on long-term interest rates and mortgage rates,” said Realtor.com chief economist Anthony Smith. “This comes despite recent soft economic data, including inflation at 2.4% and weak job growth in February, which may support low borrowing costs.”
Fed policymakers voted to leave the federal funds rate unchanged in the current range of 3.5% to 3.75% on Wednesday. The move follows the central bank’s decision to hold interest rates unchanged in January after three consecutive cuts of 25 basis points in September, October and December to close last year.
The Federal Reserve left interest rates unchanged at its March meeting. (Chip Somodevilla/Getty Images)
HOME BUYERS ARE RESISTING IN PLACEMENT AS FINANCIAL RATES CONTINUE TO TAKE STRICTLY CLOSE TO THE 6% MARK.
Economic data showing a slowing labor market, inflation continuing to run hot above the Fed’s 2% target and unrest in Iran prompted policymakers to continue to hold off on rate cuts.
Fed Chairman Jerome Powell said the current range of 3.5% to 3.75% of the benchmark federal funds rate is within the neutral range. He added that it is too soon to tell what the impact of the conflict in the Middle East will be on the economy, adding that policymakers will continue to monitor economic data as they consider adjusting monetary policy.
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Although mortgage rates are not directly affected by the Fed’s interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield rose to 4.27% as of Thursday afternoon.
