Purchase Volume Slowing as Mortgage Rates Continue to Increase

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Mortgage rates continued to rise during the week ended November 7, as the average rate for a 30-year fixed-rate mortgage increased to 6.79%, up from 6.72% 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 7.5%.

“Mortgage rates continued to inch up this week, reaching 6.79 percent,” says Sam Khater, chief economist for Freddie Mac, in a statement. “It is clear purchase demand is very sensitive to mortgage rates in the current market environment. As soon as rates began to rise in early October, purchase applications fell and over the last month have declined 10 percent.”

The average rate for a 15-year fixed-rate mortgage was 6%, up from 5.99% last week but down from 6.81% a year ago.

On Wednesday, the Mortgage Bankers Association reported that mortgage application volume plummeted 10.8% during the week ended Nov. 1, as rates increased from the previous week.

Photo: Ali Rezaei

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