Mortgage rates jump again amid housing market slowdown
Taylor Morrison CEO Sheryl Palmer discusses the headwinds facing the housing market after a drop in August existing home sales on The Claman Countdown.
Mortgage rates rose again this week, continuing their upward march and contributing further to plummeting demand in the housing market as more would-be buyers retreat.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday shows the average rate for the benchmark 30-year fixed-rate mortgage jumped to 7.49%, up from 7.31% last week and from 6.66% a year ago.
The rate for a 15-year mortgage also climbed, averaging 6.78% after coming in last week at 6.72%. One year ago, the rate on a 15-year fixed note averaged 5.9%.
A sign outside a home for sale in Atlanta, Georgia, on Sept. 6, 2023. Mortgage rates rose again this week to 7.49%, putting further pressure on the cooling housing market. (Elijah Nouvelage/Bloomberg via / Getty Images)
«Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,» Freddie Mac chief economist Sam Khater said in a statement. «Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand.»
SEE HOW MUCH HIGHER MORTGAGE RATES ARE ACTUALLY COSTING YOU
The Mortgage Bankers Association reported Wednesday home-purchase applications tumbled 6% to a nearly three-decade low last week. The data shows application volume is down 22% compared with the same time last year.
A home for sale in Atlanta on Sept. 6, 2023. Home prices in the U.S. climbed again in September as buyers competed for deals. (Elijah Nouvelage/Bloomberg via
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