Mortgage Rates Approach 7 Percent

The average rate on the 30-year fixed rate mortgage rose to 6.73 percent yesterday from 6.65 percent last week, according to mortgage buyer Freddie Mac. A year ago the rate was 3.85 percent.  Despite fluctuations, mortgage rates have been trending upward, remaining nearly double what they were a year ago

“Mortgage rates continue their upward trajectory as the Federal Reserve signals an ore aggressive stance on monetary policy,” explained Sam Khater, Freddie Mac chief economist. ” The Federal Reserve’s interest rate hikes have driven up the cost of borrowing.

Khater went on to say, “Overall, consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out. However, rate-sensitive sectors such as housing, continue to be adversely affected.  As a result, would-be homebuyers continue to face the compounding challenges of affordability and low inventory.”