Mortgage rates hit two-month high ahead of spring home-buying season

Date:

Share post:



U.S. mortgage rates rose for the fourth week in a row to a two-month high, in a major blow to housing affordability.

The 30-year fixed-rate mortgage rose and averaged 6.94% as of February 29, according to data released by Freddie Mac
FMCC,
+0.23%
on Thursday. 

It’s up 4 basis points from the previous week — one basis point is equal to one hundredth of a percentage point. 

A year ago, the 30-year was averaging at 6.65%.

The average rate on the 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 received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. 

Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 7.15% as of Thursday afternoon. The Mortgage Bankers Association’s survey noted that the 30-year was at 7.04% as of February 23.

What Freddie Mac said: “The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying,” Sam Khater, chief economist at Freddie Mac, said in a statement.

“While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines,” he added.

What are they saying? “Higher than anticipated 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.

“And an insufficient volume of existing homes for sale in many markets is making it even more difficult for many aspiring buyers to get in the market,” he added.



Source link

Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

Recent posts

Related articles

Trump Media’s DJT stock rises again after call to stop ‘naked’ short selling

Trump Media & Technology’s stock rallied Friday and was headed for a third straight gain after the...

P&G’s stock falls after sales miss, as baby and health-care volumes declined

Shares of Procter & Gamble Co. slipped Friday, after the consumer packaged-goods company reported fiscal third-quarter sales that...

Constellation Brands moves itself further away from cannabis grower Canopy Growth’s business

Alcoholic-beverage giant Constellation Brands Inc. on Thursday announced a number of moves intended to further wash its...

Nordstrom confirms it’s looking to go private, with founding family interested in deal

Nordstrom Inc. has formed a special committee of independent directors to explore going private, the company said...

AMC poised for market-share gains, boosted by premium screens and concert movies, Wedbush says

Movie-theater chain and original meme stock AMC Entertainment Holdings Inc. is well positioned to grow its market...

Equifax says weaker mortgage demand is weighing on its business

Shares of Equifax fell after hours on Wednesday after the credit-scoring giant reported first-quarter revenue that missed...

Biden calls for tripling tariffs on Chinese steel, probing Beijing’s potential unfair trade practices in shipbuilding

President Joe Biden’s administration on Wednesday rolled out new measures that aim to protect U.S. industries and...

ASML orders miss estimates as CFO says it’s still on track to meet 2025 goal

ASML Holding, the Dutch microchip equipment maker whose machines are so high tech that the U.S. limits...