Mortgage Rates Inch Up To Two-Month High, Nearing 7%

For the fourth week in a row, rates for the 30-year fixed rate mortgage  inched up four basis points to 6.94%, according to Freddie Mac. 

"Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again,” Freddie Mac’s Chief Economist Sam Khater said. “The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying. While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines.”

The 30-year fixed rate mortgage was 6.94% last week. A year ago at this time it averaged 6.65%. The 15-year fixed rate averages 6.26% last week down from last week's 6.29%, but up from this time a year ago when it was 5.89%. 

Earlier this week the Mortgage Bankers Association reported that mortgage applications dropped again by 5.6% from the previous week. Application volume is down 12% compared with the same time last year.

That's at the same time as homeowners are getting comfortable putting their homes on the market. Redfin reported that new listings rose 13% year over year during the four weeks ending February 25, marking the biggest increase in nearly three years.