Freddie Mac: 30-Year Fixed-Rate Mortgage Creeps Toward 7%

As of Jan. 9, the national average 30-year fixed-rate mortgage (FRM) was 6.93%, inching closer to 7%, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). 

That’s up from last week’s 6.91% average and marks the fourth consecutive week of increases. A year ago at this time, the 30-year FRM averaged 6.66%.

The 15-year FRM averaged 6.14%, up slightly from last week when it averaged 6.13%. The 15-year FRM averaged 5.87% a year ago, according to the GSE. 

"In the first full week of the new year, the 30-year fixed-rate mortgage remained elevated at just under 7%,” said Sam Khater, Freddie Mac’s chief economist. “The continued strength of the economy has put upward pressure on mortgage rates, and along with high home prices, continues to impact housing affordability."

"The lack of entry-level supply also remains an issue, especially for those looking to become first-time homeowners,” Khater added.

Freddie Mac’s PMMS focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.