Mortgage rates climb for third week on threat of sticky inflation
The benchmark 30-year rate rose to 6.50%
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The average rate on a 30-year fixed mortgage rose to 6.5% on Thursday from 6.32% last week, according to mortgage buyer Freddie Mac. A year ago, the average rate was 3.89%.
The 15-year fixed-rate mortgage averaged 5.76%, up from last week when it averaged 5.51%. A year ago at this time, the 15-year FRM averaged 3.14%.
Homes in Rocklin, Calif., on Dec. 6, 2022. A record number of homes are being delisted as sellers face a sharp drop in demand, according to real estate brokerage Redfin. ( David Paul Morris/Bloomberg via Getty Images / Getty Images)
"The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation," said Sam Khater, Freddie Mac’s Chief Economist.
Despite fluctuations, mortgage rates have been trending upward. Since peaking in November, mortgage rates still remain nearly double what they were a year ago.
A "sold" is posted outside a single family home in a residential neighborhood, in Glenside, Pa., Aug. 4, 2021. (AP Photo/Matt Rourke, File / AP Images)
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Higher rates can add hundreds of dollars a month in costs for homebuyers, on top of already high home prices.
Khater said, "Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually by taking the time to shop among lenders to find a better rate."
The Associated Press contributed to this report.
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