Mortgage rates increased for a fourth consecutive week, with the average rate for a 30-year fixed-rate mortgage climbing to 6.94%, up from 6.9% last week and up from 6.65% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
“Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying.
“While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines,” Khater adds.
The average rate for a 15-year fixed-rate mortgage was 6.26%, down from 6.29% last week but up from 5.89% the same week a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage applications fell 5.6% during the week ended February 23, due to higher rates.
Photo: Bikram Sharma