After decreasing for five consecutive weeks, mortgage rates went back on the rise this week, with the average rate for a 30-year fixed-rate mortgage climbing to 6.72%, up from 6.67% last week but down from 6.89% a year ago, according to Freddie Mac.
“After declining for five consecutive weeks, the 30-year fixed-rate mortgage moved slightly higher following a stronger than expected jobs report,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Despite ongoing affordability challenges in the housing market, we are seeing home purchase and refinance applications respond to the downward trajectory in rates, increasing by 25 percent and 56 percent, respectively, compared to the same time last year.”
The average rate for a 15-year fixed-rate mortgage was 5.86%, up from 5.80% last week but down from 6.17% a year ago.
In a statement, Samir Dedhia, CEO of One Real Mortgage, says the increase in rates was “driven in part by stronger-than-expected job market data.”
“Even with the slight uptick, mortgage rates remain below the 7 percent threshold, providing continued stability for borrowers as we move deeper into the summer homebuying season,” Dedhia says. “Although labor market resilience contributed to the recent shift, broader rate trends remain favorable, with many borrowers responding to recent improvements. Purchase applications are up 25 percent and refinance activity has climbed 56 percent compared to this time last year, an indication that consumers are re-engaging as affordability improves.”
Photo: Susan Q Yin