Mortgage rates rise for the sixth consecutive week
The 30-year fixed-rate mortgage (FRM) averaged 6.7 percent
The Corcoran Group president and CEO Pamela Liebman argues homebuyers wouldn’t ‘typically’ have the ability to back out of a contract when the market’s ‘on fire.’
The 30-year fixed-rate mortgage averaged 6.70 percent with an average 0.9 point as of Sept. 29, according to government-sponsored mortgage securitize Freddie Mac. The rate is up from last week when it averaged 6.29 percent. A year ago at this time, the 30-year FRM averaged 3.01 percent.
The 15-year fixed-rate mortgage averaged 5.96 percent with an average 1.3 point, up from last week when it averaged 5.44 percent. A year ago at this time, the 15-year FRM averaged 2.28 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 5.30 percent with an average 0.4 point, up from last week when it averaged 4.97 percent. A year ago at this time, the 5-year ARM averaged 2.48 percent.
Sign outside a home in Wheeling, Ill., on May 5, 2022. (AP Photo/Nam Y. Huh)
MORTGAGE RATES REACH HIGHEST SINCE AUGUST 2007
"The uncertainty and volatility in financial markets is heavily impacting mortgage rates," said Sam Khater, Freddie Mac’s chief economist. "Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year.
"This means that for the typical mortgage amount, a borrower who locked-in at the higher end of the range would pay several hundred dollars more than a borrower who locked-in at the lower end of the range."
Khater continued, "The large dispersion in rates means it has become even more important for homebuyers to shop around with different lenders."
This home in Durham, N.C., was for sale at $320,000. (RE/MAX)
CLICK HERE TO GET THE FOX BUSINESS APP
Freddie Mac's latest report comes as higher mortgage rates are making it more difficult for potential homebuyers. Bank of America strategists said the average interest rate on the most popular U.S. home loan could soon climb above 7%, hitting the highest level since the early 2000s.
In an analyst note obtained by FOX Business, the bank's economists predicted that borrowing costs will continue rising as a result of the Federal Reserve's war on inflation and a worsening housing shortage.
National Association of Realtors Chief Economist Lawrence Yun expects the economy will remain sluggish throughout the remainder of this year, with mortgage rates rising to close to 7% in the coming months.
Although the Fed has already sent the housing market into a recession with the most aggressive interest rate hikes in decades, mortgage rates have repeatedly marched higher.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FMCC | FEDERAL HOME LOAN MORTGAGE CORP. | 3.1 | +0.00 | +0.00% |
Additional reporting from Megan Henney.