The average rate for a 30-year fixed-rate mortgage increased to 7.10% this week, up from 6.88% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.39%.
“The 30-year fixed-rate mortgage surpassed 7 percent for the first time this year, jumping from 6.88 percent to 7.10 percent this week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.”
The average rate for a 15-year fixed-rate mortgage was 6.39%, up from 6.16% last week and up from 5.76% a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage applications increased 3.3% during the week ended April 12, driven mainly by a 5% increase is purchase applications, The increase in applications came despite a rise in rates.
Photo: Alison Pang