Mortgage rates continued their upward march this week, with the average rate for a 30-year fixed-rate mortgage reaching 7.63%, up from 7.57% 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 6.94%.
“Mortgage rates continued to approach eight percent this week, further impacting affordability,” says Sam Khater, chief economist for Freddie Mac, in a statement. “In this environment, it’s important that borrowers shop around with multiple lenders for the best mortgage rate.
“With research showing down payment is the single largest barrier to first-time homebuyers attaining homeownership, borrowers should also ask their lender about down payment assistance,” Khater says. “Launched this week, Freddie Mac’s DPA One tool helps lenders and homebuyers identify and take advantage of down payment assistance programs nationwide.
“Not only are homebuyers feeling the impact of rising rates, but home builders are as well,” he adds. “Incoming data shows that the construction of new homes rebounded in September but as rates keep rising, home builders appear to be losing confidence. As a result, we expect construction to trend down in the short-term.”
The average rate for a 15-year fixed-rate mortgage was 6.92%, up from 6.89% last week.
A year ago at this time, the average rate for a 15-year was 6.23%.
Photo: Alison Pang