Mortgage rates rise slightly as homebuyer sentiment tanks

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The Conference Board chief economist Dana Peterson says the LEI is great for the goods economy on Making Money.

Mortgage rates ticked slightly higher this week, with the 30-year fixed rate note continuing to hover in the mid-6% range. The stalled housing market signals consumers still want to hold off on making a move until rates come down, and data indicates homebuyer sentiment is overwhelmingly pessimistic right now.

Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate for the benchmark 30-year fixed mortgage increased to 6.64% this week, up from 6.63% last week. The 30-year average rate was 6.12% a year ago.

A «For Sale» sign is posted outside a home in Teaneck, New Jersey, on Nov. 24, 2022. (Yuvraj Khanna / Bloomberg / Getty Images)

At the same time, the rate on the 15-year fixed mortgage edged lower, averaging 5.9% after coming in last week at 5.94%. One year ago, the rate on the 15-year fixed note averaged 5.25%.

«The economy and labor market remain strong with wage growth outpacing inflation, which is keeping consumer spending robust,» said Sam Khater, Freddie Mac's chief economist, noting that rates «remain stagnant.»

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«Meanwhile, affordability in the housing market is an ongoing issue due to continued high home prices, elevated mortgage rates and low supply of homes on the market, particularly for first-time and low-income homebuyer,» he added.

This view shows homes in Rocklin, California, on Dec. 6, 2022. (David Paul Morris / Bloomberg / Getty Images)

Many would-be buyers and sellers are waiting on the sidelines for rates to come down, and the latest Fannie Mae national housing survey