In a recent development, mortgage rates have surged for the second consecutive week, reaching levels not seen since mid-July. The latest figures from Freddie Mac’s Primary Mortgage Market Survey reveal critical shifts in the real estate market as the year concludes.
The average rate for a 30-year fixed mortgage has climbed to 6.85%, a significant increase from last week’s 6.72% and substantially higher than the 6.61% rate recorded a year ago. This marks the highest point for the 30-year loan since it hit 6.89% in mid-July. Notably, the lowest rate this year was observed at the end of September at 6.08%, while the peak was 7.22% in early May.
Freddie Mac’s chief economist, Sam Khater, highlighted, “Mortgage rates increased for the second straight week, rebounding after a decline from earlier this month.” He added that while there has been a modest improvement in new and existing home sales, a critical issue remains the substantial undersupply of homes. Khater noted, “A strong economy can help build momentum heading into the new year and potentially boost purchase activity.”
Meanwhile, the average rate for a 15-year fixed mortgage has also seen an uptick, reaching 5.92% from 5.84% last week. A year ago, this figure averaged 5.95%, reflecting a slight shift over the 12-month period.
The current landscape underscores ongoing challenges within the housing market, including affordability and inventory constraints. As the economy continues to navigate these complexities, individuals and families looking to secure home financing are closely monitoring these rate changes.
Analysts are poised to evaluate how these rate movements might influence the broader real estate landscape, especially as potential homebuyers weigh their options in an environment that remains dynamic and often unpredictable.
As mortgage rates hover near mid-year highs, the real estate market faces consequential shifts. The ongoing trends could have significant implications for buyers and sellers alike as we move into the new year.
Source: Fox13news
