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Mortgage rates climb again approaching 7%

Mortgage rates marched higher this week, nearing 7% with no relief in sight for the sluggish housing market.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage rose to 6.88% this week from 6.82% last week. The average rate on a 30-year loan was 6.27% a year ago.

home for sale

A for sale sign is posted in front of a home on April 29, 2022, in San Francisco, California.  (Justin Sullivan/Getty Images / Getty Images)

The average rate on the 15-year fixed mortgage jumped to 6.16% from 6.06% last week. One year ago, the rate on the 15-year fixed note averaged 5.54%.

US NEW HOME SALES FALL; MEDIAN PRICE LOWEST IN MORE THAN 2-½ YEARS

“Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path,” said Sam Khater, Freddie Mac’s chief economist. “While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different economic picture.”

Open house at a home for sale

Open house at a home for sale in Evesham Twp., N.J., on Feb. 26, 2023. (Fox News)

Khater added, “It’s clear that while the trend in inflation data has been close to flat for nearly a year, the narrative is much less clear and resembles the unrealized expectations of a recession from a year ago.”

THIS IS THE VERY BEST TIME TO SELL IF YOU WANT TOP DOLLAR FOR YOUR HOME

The combination of persistently elevated rates and record-high home prices has left the housing market stalled for months, as many would-be buyers and sellers remain on the sidelines waiting for affordability to improve.

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Hopes that the Fed would cut rates in June were dashed this week when the Labor Department reported inflation rose again in March, and economists expect mortgage rates to remain elevated through the rest of the year. 

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