Mortgage rates increased for a third straight week, with the average rate for a 30-year fixed-rate mortgage rising to 6.96%, up from 6.81% 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 5.51%.
“Mortgage rates increased to their highest level since November 2022, the last time rates broke seven percent,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Incoming data suggest that inflation is softening, falling to its lowest annual rate in more than two years. However, increases in housing costs, which account for a large share of inflation, remain stubbornly high, mainly due to low inventory relative to demand.”
The average rate for a 15-year fixed-rate mortgage was 6.30%, up from 6.24% the previous week and up from 4.67% a year ago.
The Mortgage Bankers Association reports that despite the recent rise in rates, mortgage applications increased during the week ended July 7, rising 0.9% compared with the previous week.
Photo: David Kristianto