According to the Primary Mortgage Market Survey from the Federal Home Loan Mortgage Corporation (Freddie Mac), average 30-year fixed mortgage rates rose from 6.64 per cent to 6.77 per cent week-on-week.
A year ago, the average stood at 6.32 per cent.
Sam Khater, chief economist at Freddie Mac, said: “On the heels of consumer prices rising more than expected, mortgage rates increased this week.
“The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more than half of all states compared to a year earlier.”
The same data showed the average 15-year fixed mortgage rate was 6.12 per cent, up from 5.9 per cent the previous week. A year ago, this average was 5.51 per cent.
Jump in US mortgage applications
Data from the Mortgage Bankers Association (MBA) found new home applications had increased by 19.1 per cent year-on-year (YOY).
This was also 38 per cent higher than in January. The MBA said the change did not include seasonal adjustments.
Joel Kan, vice president and deputy chief economist, said: “Applications for new home purchases were strong in January, as newly built homes remained an attractive option for prospective homebuyers who looked to take advantage of lower mortgage rates during the month.
“Applications were up 19 percent from a year ago – the 12th consecutive annual increase – and the non-seasonally adjusted index was the strongest January reading in the survey’s history. The seasonally adjusted annualised pace of new home sales was 700,000 units, the highest sales pace since October 2023.”
