For the first time in four weeks, mortgage rates have ticked upwards, as reported in Freddie Mac’s latest weekly survey. The 30-year fixed-rate mortgage averaged 7.03% for the week ending May 30, marking a rise of 9 basis points from the previous week.
By The Numbers:
- The 30-year fixed rate is now 24 basis points higher than it was a year ago.
- The 15-year fixed rate also rose, reaching 6.36%, up 12 basis points from last week.
What They’re Saying: Freddie Mac’s Chief Economist, Sam Khater, attributes the rise to market dynamics: “More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board. This reality, as well as economic signals that have moved sideways over the last few weeks, have resulted in mortgage rates drifting higher as markets continue to dial back expectations of interest rate cuts.”
Bottomn Line: The increase in mortgage rates comes amid falling mortgage demand, which has reached a three-month low, suggesting that higher rates are keeping the housing market from ramping back up.