The average rate for a 30-year fixed-rate mortgage increased to 7.31% this week, up from 7.19% last week to reach the highest level in nearly 23 years, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.7%.
“The 30-year fixed-rate mortgage has hit the highest level since the year 2000,” says Sam Khater, chief economist for Freddie Mac, in a statement. “However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances.”
The average rate for a 15-year fixed-rate mortgage was 6.72%, up from last week when it averaged 6.54%.
A year ago at this time, the average rate for a 15-year was 5.96%.
Yesterday the Mortgage Bankers Association reported that mortgage application volume fell 1.3% during the week ended September 22, as rates continued to rise. Applications for refinances decreased 1% from the previous week and were down 21% compared with the same week one year earlier, while applications for purchases decreased 2% and were down 27% from a year ago.
Photo: Susan Q Yin