Mortgage rates in the United States have continued to climb, with the 30-year fixed-rate mortgage (FRM) averaging 7.19% today, a slight increase from last week's average of 7.18%, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). A year ago, the 30-year FRM was notably lower, averaging 6.29%.
The 15-year FRM has followed a similar trend, reaching an average of 6.54% today, up from last week's average of 6.51%. This time last year, the 15-year FRM averaged 5.44%.
These increases come as the Federal Reserve paused its interest rate hikes. "Mortgage rates continue to linger above seven percent as the Federal Reserve paused their interest rate hikes," said Sam Khater, Freddie Mac’s Chief Economist.
The high rates are having a noticeable impact on the housing market. "Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect," Khater added.
The effects of these rising rates are already being seen in the construction industry. Builder sentiment has declined for the first time in several months and construction levels have dipped to a three-year low. This decrease in construction could further exacerbate the already low housing supply.
Freddie Mac's PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.
Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation, has been promoting liquidity, stability, affordability, and equity in the housing market throughout all economic cycles since its establishment in 1970. It aims to make homeownership possible for families across the nation.
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