Mortgage rates continued their upward trajectory for the fourth consecutive week, according to the latest weekly survey from Freddie Mac. The 30-year fixed-rate mortgage (FRM) averaged 6.54% for the week ending October 24th, rising by ten basis points from the previous week.
- This marks the highest level for the 30-year rate since early August, reflecting ongoing economic momentum.
- Meanwhile, the 15-year fixed-rate mortgage rose eight basis points to an average of 5.71%, also hitting its highest point since early August.
Ironic: The 30-year FRM is now just 46 basis points away from the Federal Reserve’s announcement of a 50 basis point cut to the federal funds rate, highlighting the disconnect between Fed policy shifts and mortgage rate movements.
What They’re Saying: Sam Khater, Chief Economist at Freddie Mac, commented on the rate rise, stating, “The continued strength in the economy drove mortgage rates higher once again this week. Over the last few years, there has been a tension between downbeat economic narrative and incoming economic data stronger than that narrative. This has led to higher-than-normal volatility in mortgage rates, despite a strengthening economy.”
Bottom Line: Despite the Fed’s rate cuts, economic resilience is driving mortgage rates higher, adding pressure to homebuyers already grappling with affordability challenges.
