In its latest Primary Mortgage Market Survey, the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed that the 30-year fixed rate mortgage average was 6.12 per cent, up from 6.09 per cent last week. A year ago, the average was just 3.69 per cent.
Freddie Mac put the slight rate rise down to an interest rate increase and a robust job market report.
Sam Khater, Freddie Mac’s chief economist said: “Following an interest rate hike from the Federal Reserve and a surprisingly strong jobs report, mortgage rates increased slightly this week.
“The 30-year fixed rate continues to hover close to six per cent, and interested homebuyers are easing their way back to the market just in time for the spring homebuying season.”
Meanwhile, the 15-year fixed rate mortgage averaged 5.25 per cent, also up from last week when it averaged 5.14 per cent. A year ago at this time, the 15-year fixed rate averaged 2.93 per cent.
Applications on the rise
A separate weekly survey from the Mortgage Bankers Association (MBA) found that 30-year rates had actually dipped slightly, while their 15-year equivalents were rising.
The MBA reported that the interest rate for 30-year fixed rate mortgages fell to 6.18 per cent from 6.19 per cent a week earlier, while the average rate for 15-year fixed rate mortgages grew to 5.64 per cent from 5.50 per cent a week ago.
Despite the fluctuations, the MBA also noted that mortgage applications were on the rise, up 7.4 per cent from one week earlier.
Joel Kan, MBA’s vice president and deputy chief economist said: “Applications rose last week as the 30-year fixed mortgage rate inched lower to 6.18 per cent, its fifth consecutive weekly decline. The 30-year fixed rate is almost a percentage point below its recent high of 7.16 per cent in October 2022.
“This week’s results are a step in the right direction. Purchase activity that was put on hold last year due to the quick run-up in rates is gradually coming back as rates ease and housing demand remains strong, driven by supportive demographics and the ongoing strength in the job market.”
