Mortgage rates inch up to highest level in six weeks

A year ago, the 30-year was averaging at 6.13%.

The average rate on the 15-year mortgage was 5.96%, up from 5.76% last week. The 15-year was at 5.17% a year ago.

Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. 

Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.95% as of Thursday afternoon.

What Freddie Mac said: “Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market,” Sam Khater, chief economist at Freddie Mac, said in a statement.

“Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace,” he added.

What are they saying? “Rates are down from the more than two-decade highs hit at the end of October, but for the past four weeks, average rates have stabilized a bit,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement.

“Falling rates are a good sign for home buyers. At a 7% interest rate, the monthly payment on a $400,000 home would be around $2,900,” she added. “If rates fell to 6%, the monthly payment for that home would be about $2,700.” 

“Mortgage rates rose slightly last week, but that didn’t slow the mortgage market’s momentum to start the year,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement. “Along with the expectation that rates will continue to decline slowly, recent data on homebuyer sentiment and pending home sales are positive signs heading into the spring.”