US mortgage interest rates rose for the fourth straight week to their highest level in two months, in a major blow to housing affordability.
The 30-year mortgage rate has risen and averaged 6.94% as of February 29, according to data from Freddie Mac FMCC.
Thursday.
It rose 4 basis points from the previous week – one basis point is equal to one-hundredth of a percentage point.
A year ago, the average yield on 30-year bonds was 6.65%.
The average interest rate on a 15-year mortgage was 6.26%, down from 6.29% last week. The 15-year was at 5.89% a year ago.
Freddie Mac's weekly report on mortgage rates is based on thousands of applications from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data published by Mortgage News Daily said the interest rate on a 30-year mortgage was averaging 7.15% as of Thursday afternoon. The survey by the Mortgage Bankers Association indicated that the 30-year interest rate was 7.04% as of February 23.
What Freddie Mac said: “The recent rise in interest rates has dampened the already initial momentum for homebuyers as we head into spring, a historically busy season for homebuying,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“While sales of new construction homes are trending in a positive direction, rising rates and rising prices continue to pose challenges to affordability that may leave potential homebuyers on the sidelines,” he added.
what are they saying? “Higher-than-expected inflation and jobs data are keeping upward pressure on mortgage rates,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.
“The insufficient volume of current homes for sale in many markets makes it more difficult for many aspiring buyers to access the market,” he added.
