Mortgage rates rise above 7 percent, deepening struggles in housing market
Date
1/19/2025 6:36:10 AM
(MENAFN) This week, mortgage rates climbed higher, surpassing the 7 percent mark, creating additional obstacles for the already sluggish housing market. The persistent increase in borrowing costs continues to deter potential homebuyers and weigh heavily on real estate activity.
Freddie Mac's most recent Primary Mortgage Market Survey, released on Thursday, revealed that the average interest rate for a 30-year fixed mortgage rose to 7.04 percent. This marks an increase from last week's rate of 6.93 percent and is significantly higher than the 6.60% average recorded at the same time last year.
"Mortgage rates ticked up for the fifth consecutive week and crossed seven percent for the first time since May of 2024," explained Sam Khater, Freddie Mac's chief economist. "The underlying strength of the economy is contributing to this increase in rates."
The rise in interest rates wasn't limited to 30-year loans. The average rate on 15-year fixed mortgages also experienced an uptick, climbing to 6.27 percent from 6.14 percent the week before. In comparison, this rate was 5.76 percent one year ago.
With mortgage rates at their highest levels in months, affordability challenges for homebuyers are intensifying, exacerbating the challenges facing the housing market.
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