The average rate for a 30-year fixed-rate mortgage increased to nearly 7% this week.
It was the third consecutive week that mortgage rates increased, according to Freddie Mac’s Primary Mortgage Market Survey.
The average rate for a 30-year, fixed-rate mortgage increased to 6.9%, up from 6.77% last week and up from 6.5% a year ago.
“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”
The average rate for a 15-year fixed-rate mortgage wax 6.29%, up from 6.12% last week and up from 5.76% a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume dropped 10.6% during the week ended February 16, due to rising rates.
During that week, applications for refinances fell 11% but were up 0.1% compared with the same week one year ago. Applications for purchases dropped 10% compared with the previous week and were down 13% compared with the same week one year earlier.
Photo: Jungwoo Hong