Average 30-year fixed mortgage rates increased marginally from 6.63 per cent last week to 6.64 per cent, according to the Primary Mortgage Market Survey from the Federal Home Loan Mortgage Corporation (Freddie Mac).
By comparison, a year ago, the 30-year average stood at 6.12 per cent.
Meanwhile, the average 15-year fixed rate mortgage rate dropped from 5.94 per cent a week ago to 5.90 per cent. Nonetheless, this is up from the 5.25 per cent average recorded a year ago.
Mortgage rates are “stagnant”, having hovered around the mid-six per cent range over the past few weeks, noted Sam Khater, chief economist at Freddie Mac.
He continued: “The economy and labour market remain strong with wage growth outpacing inflation, which is keeping consumer spending robust.
“Meanwhile, affordability in the housing market is an ongoing issue due to continued high home prices, elevated mortgage rates and a low supply of homes on the market, particularly for first-time and low-income homebuyers.”
Mortgage applications rising
Elsewhere, data from the Mortgage Bankers Association (MBA) found that applications for mortgage finance in the US are on the rise.
It reported that application numbers had grown by 3.7 per cent from the previous week, while refinance applications in particular were up by 12 per cent annually.
The MBA said that average rates on 30-year fixed rate mortgages had risen from 6.78 per cent to 6.8 per cent over the week, while rates on 15-year deals had moved from 6.34 per cent to 6.41 per cent.
Joel Kan, vice president and deputy chief economist, said: “Mortgage rates have stayed close to where they started the year, despite swings in Treasury yields because of slowing inflation offset by stronger-than-expected readings on the job market.
“Rates at these levels have not prompted much of a reaction in the refinance market, as most homeowners have mortgages with much lower rates. Purchase activity has been strong to start 2024 compared to the final quarter of 2023. However, activity is still weaker than a year ago because of low housing supply.”
