Mortgage rates climb again as high housing costs persist
The Conference Board chief economist Dana Peterson says the LEI is great for the goods economy on Making Money.
Mortgage rates rose again this week, spelling further bad news for weary would-be buyers and sellers as housing inflation continues to surge.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate for the benchmark 30-year fixed mortgage climbed to 6.77% this week, up from 6.64% last week. The 30-year average rate was 6.32% a year ago.
A home for sale in Cupertino, California, on Feb. 7, 2024. Strong demand for housing amid a dearth of inventory is driving up home prices. (Loren Elliott/Bloomberg via Getty Images / Getty Images)
The rate on the 15-year fixed mortgage also increased, averaging 6.12% after coming in last week at 5.9%. One year ago, the rate on the 15-year fixed note averaged 5.51%.
At the same time, home prices continued to climb, edging out further prospective buyers as they are increasingly priced out of the market.
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Homeowners locked in at low interest rates have a disincentive to sell at mid-6% interest rates, with a majority locked in below 5%. (David McNew/Getty Images / Getty Images)
Meanwhile, many homeowners interested in moving are opting to stay put, because of the financial disincentive of taking on a significantly higher mortgage rate than they currently have.
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