US mortgage rates continue upward trajectory for 3rd consecutive week
Date
10/20/2024 2:45:27 AM
(MENAFN) Mortgage rates in US have continued their upward trajectory this week, posing additional challenges for demand in the housing market, which is already grappling with high rates and elevated home prices. According to Freddie Mac's latest Primary Mortgage Market Survey released on Thursday, the average rate on the benchmark 30-year fixed mortgage jumped to 6.44 percent, up from 6.32 percent the previous week. This time last year, the average rate stood at 7.63 percent, highlighting the fluctuations that have characterized the market.
Sam Khater, Freddie Mac’s chief economist, noted that this marks the third consecutive week of increases for the 30-year fixed-rate mortgage, inching closer to the 6.5 percent threshold. He pointed out that while higher rates typically indicate a robust economy that can support the housing market, the current rates remain more than one percentage point lower than those seen a year ago. This presents an opportunity for potential homebuyers, especially if they take the time to shop around for the best quotes, as rates can vary significantly among lenders.
Despite this slight reprieve in year-over-year rates, many prospective buyers and sellers are adopting a wait-and-see approach, hoping for a decline in rates before making any commitments. A Zillow survey indicates that approximately 80 percent of mortgage holders currently enjoy rates below 5 percent, further complicating the decision for those considering entering the market amid rising costs.
Additionally, the average rate on the 15-year fixed mortgage also saw an increase, rising to 5.63 percent from 5.41 percent last week. In comparison to last year, when the rate averaged 6.92 percent, the current environment reflects the shifting dynamics in mortgage lending and the broader economic context that continues to influence housing affordability and market activity.
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