After decreasing for three consecutive weeks, mortgage rates reversed this week, with the average rate for a 30-year fixed-rate mortgage rising to 7.03%, up from last week when it averaged 6.94%, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.79%.
“Following several weeks of decline, mortgage rates changed course this week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board. This reality, as well as economic signals that have moved sideways over the last few weeks, have resulted in mortgage rates drifting higher as markets continue to dial back expectations of interest rate cuts.”
The average rate for a 15-year fixed-rate mortgage was 6.36%, up from last week when it averaged 6.24% and up from a year ago when it averaged 6.18%.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume tumbled 5.7% during the week ended May 24, as rates began to rise again.
Photo: Ali Rezaei