Fixed mortgage rates march higher, demand for adjustable-rate loans jumps
Washington Examiner columnist Tiana Lowe Doescher and FOX Business Lydia Hu join Making Money host Charles Payne to discuss the impact of the housing crisis on young people.
The average rates for fixed mortgages continued their upward climb this week, accompanied by a marked rise in demand for adjustable loans as consumers seek relief from record-high monthly payments.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday shows that the average rate for the benchmark 30-year fixed-rate mortgage hit 7.57% this week, up from 7.49% last week and 6.92% a year ago.
The rate for a 15-year fixed mortgage also rose, averaging 6.89% after coming in last week at 6.78%. One year ago, the rate on a 15-year fixed note averaged 6.09%.
A sign outside a home for sale in Atlanta, Georgia, on September 6, 2023. Homebuyer demand is at a thirty-year low as rising rates and high home prices put pressure on the market. (Photographer: Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)
«For the fifth consecutive week, mortgage rates rose as ongoing market and geopolitical uncertainty continue to increase,» said Sam Khater, Freddie Mac’s Chief Economist. «The good news is that the economy and incomes continue to grow at a solid pace, but the housing market remains fraught with significant affordability constraints. As a result, purchase demand remains at a three-decade low.»
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Of those who are in the market to buy a home right now, there has been a surge in consumers opting for mortgages with adjustable rate mortgages (ARMs), which tend to start with a lower rate but can rise over the life of loan.
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