In its latest Primary Mortgage Market Survey, the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed that 30-year fixed rate mortgages averaged 7.19 per cent, up from last week when they were 7.18 per cent. A year ago, the average was 6.29 per cent.
The 15-year fixed rate mortgage averaged 6.54 per cent, up from 6.51 per cent a week ago. A year ago, the average stood at 5.44 per cent.
Applications rise despite continued high rates
A separate weekly survey from the Mortgage Bankers Association (MBA) also revealed continued high rates and a dramatic drop-off in applications.
The MBA reported that the average rate for 30-year fixed rate mortgages was 7.31 per cent, up from 7.27 per cent last week. The average rate for the 15-year equivalents dropped to 6.62 per cent from 6.72 per cent last week.
The survey also revealed that mortgage applications had increased by 5.4 per cent from one week earlier despite the rising mortgage rate and falling housing stock.
Joel Kan, MBA’s vice president and deputy chief economist, said: “Mortgage applications increased last week, despite the 30-year fixed mortgage rate edging back up to 7.31 per cent – its highest level in four weeks.
“Purchase applications increased over the week but remained 26 per cent lower than the same week a year ago, as homebuyers continue to face higher rates and limited for-sale inventory, which have made purchase conditions more challenging. Refinance applications also increased last week but are still almost 30 per cent lower than the same week last year.”
