Real Estate February 22, 2024

Mortgage Rates Now Almost 7 Percent–Again

The 30-year fixed rate mortgage average now stands at 6.9 percent, Freddie Mac reported today.  A year ago the average stood 0.4 percent lower.  The 15-year fixed rate mortgage average also moved up 0.53 percent reaching 6.29 percent.

“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” the report noted.  Historically the combination of a vibrant economy and modestly higher rates did not impact the housing market in a meaningful way.  However, Freddie Mac said the current cycle is different than the “historical norms as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”