Mortgage rates increased this week, as the average rate for a 30-year, fixed-rate mortgage reached 6.85%, up from 6.72% last week and up from 6.61% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
“Mortgage rates increased for the second straight week, rebounding after a decline from earlier this month,” says Sam Khater, chief economist for Freddie Mac, in a statement. “While a slight improvement in new and existing home sales is encouraging, the market remains plagued by an overwhelming undersupply of homes. A strong economy can help build momentum heading into the new year and potentially boost purchase activity.”
The average rate for a 15-year fixed-rate mortgage was 6.0%, up from 5.92% last week and up from 5.93% a year ago.
Last week, the Mortgage Bankers Association reported that mortgage application volume dipped 0.7% during the week ended December 13, as mortgage rates increased.
The decrease in application volume followed five consecutive weeks of increases.
Photo: Susan Q Yin
