The average rate on a 30-year mortgage rose to 6.69% from 6.6% last week, mortgage buyer
As mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford.
Rates have increased three out of four weeks this month. The latest uptick brings the average rate to its highest level since
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, lifting the average rate to 5.96% from 5.76% last week. A year ago, it averaged 5.17%,
Home loan borrowing costs have been mostly easing since late last year, after the average rate on a 30-year mortgage climbed to 7.79%, the highest level since late 2000.
As mortgage rates have come down, so have monthly payments on new home loans.
The national median monthly payment listed on mortgage applications in December fell 3.8% from the previous month to
The overall pullback in mortgage rates since their recent peak loosely tracks the moves in the 10-year
Many economists are projecting that mortgage rates will continue heading lower this year, though forecasts generally have the average rate on a 30-year home loan hovering around 6% by the end of the year.
If rates keep easing that should help boost purchasing power for prospective homebuyers this spring, traditionally the busiest period for home sales.
“Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace,” said
Elevated mortgage rates and a dearth of available homes have kept the
For now, the average rate on a 30-year mortgage remains sharply higher than just two years ago, when it was 3.45%.
That gap between rates now and then has helped limit the number of previously occupied homes on the market by discouraging homeowners who locked lower rates from selling. Nearly 90% of
“Prospective homebuyers are eagerly watching mortgage rates as they decide when, or if, to get into the market,” said
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