A strong U.S. economy is keeping mortgage rates over 7%.
The 30-year fixed-rate mortgage averaged 7.18% as of September 14, according to data released by Freddie Mac
FMCC,
-6.45%
on Thursday.
That’s up 6 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 6.02%.
The average rate for a 15-year mortgage was 6.51%, down from 6.52% last week. The 15-year rate was at 5.21% 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.
According to separate data from Mortgage News Daily, the 30-year fixed-rate mortgage was averaging 7.22% as of Thursday afternoon.
What Freddie Mac said: “The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” Sam Khater, chief economist at Freddie Mac, said in a statement. “However, potential homebuyers can still benefit during these times of high mortgage rates by shopping around for the best rate quote.”
What are economists saying? “The Freddie Mac fixed rate for a 30-year mortgage remained above 7% this week, as investors focus on the impacts of the uptick in headline inflation on next week’s Fed rate decision,” Jiayi Xu, an economist at Realtor.com, said in a statement.
“High mortgage rates continue to subdue borrower demand, with mortgage applications in the first full week of September falling to lows last seen in 1996,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement. The MBA expects the 30-year rate to be closer to 6% by the end of the year.
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