The average rate for a 30-year fixed-rate mortgage hit 7.09% this week, up from 6.96% last week and up from 5.13% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
That’s the highest average rate for a 30-year since 2002.
“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The last time the 30-year fixed-rate mortgage exceeded seven percent was last November. Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.”
The average rate for a 15-year fixed-rate mortgage was 6.46%, up from 6.34% last week and up from 4.55% a year ago.
The recent increase in rates has slowed the pace of mortgage originations. Yesterday, the Mortgage Bankers Association reported that mortgage applications decreased 0.8% during the week ended August 11. It was the fourth consecutive week that mortgage applications decreased overall.
Photo: Alison Pang