The average rate for a 30-year fixed-rate mortgage climbed to 7.04% this week, up from 6.93% last week, according to to Freddie Mac.
It was the fifth consecutive week that mortgage rates increased – and the first time since May 2024 that the average rate for a 30-year reached above 7%.
A year ago at this time, the average rate for a 30-year was 6.60%.
In a statement, Sam Khater, chief economist for Freddie Mac, says “the underlying strength of the economy is contributing to this increase in rates.”
“Despite rising rates, Freddie Mac research highlights that consumers can save money if they shop for several different lender quotes,” Khater says.
The average rate for a 15-year fixed-rate mortgage was 6.27%, up from 6.14% last week and up from 5.76% a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume surged 33.3% during the week ended January 10, despite an increase in rates.
Photo: David Kristianto