It's not what anyone wants to hear, but last week mortgage rates for the average 30-year fixed rate inched back up to 6.77%, according Freddie Mac.
"On the heels of consumer prices rising more than expected, mortgage rates increased this week,” Freddie Mac’s Chief Economist Sam Khater said. “The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more than half of all states compared to a year earlier."
National Association of Realtors Deputy Chief Economist Jessica Lautz noted that while weekly mortgage interest rates have risen, the overall trend since fall 2023 has been downward, with rates now a full percentage point lower than recent highs.
She said that means for homebuyers considering a purchase, the current average mortgage payment for a typical home priced at $400,000, with a 20% down payment, stands at $2,080.
Despite expectations of mortgage interest rates potentially dropping to the low 6% range later in the year, buyers are advised to consider various factors, including rising home prices due to limited inventory. Timing the real estate market solely based on mortgage rates, especially with minor fluctuations, is cautioned against, as life events such as new births, marriages, and job changes often dictate decisions.
As of February 15, 2024, the 30-year Fixed-Rate Mortgage (FRM) averaged 6.77%, up from the previous week's average of 6.64%. A year ago, the 30-year FRM averaged 6.32%. Similarly, the 15-year FRM averaged 6.12%, compared to 5.90% the previous week and 5.51% a year ago.
