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Building Momentum for Mortgage Rates

Mortgage rates in America are slowly but surely building momentum. 

The average 30-year, fixed rate mortgage is now up for the second straight week, having increased to 4.6% from 4.54% the previous week. The average 15-year, fixed, meanwhile, rose to 4.08% from 4.02 percent, and the average five-year, Treasury-indexed hybrid adjustable rose to 3.93% from 3.87%.

“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” says Sam Khater, chief economist at Freddie Mac. “Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months. Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close.”