In a significant setback for housing affordability, U.S. mortgage rates have risen for the fourth consecutive week, reaching a two-month high.
Mortgage Rate Statistics
- 30-Year Fixed-Rate: 6.94% as of February 29 (up 4 basis points from the previous week)
- 15-Year Fixed-Rate: 6.26% (down from 6.29% last week)
Comparatively, a year ago, the 30-year fixed-rate mortgage was at 6.65%, and the 15-year fixed-rate mortgage was at 5.89%.
Industry Insights
Freddie Mac’s data, sourced from thousands of lender applications, indicates a steady increase in rates. On Thursday afternoon, separate reports from Mortgage News Daily and the Mortgage Bankers Association revealed varying averages for the 30-year fixed-rate mortgage.
Expert Opinions
Freddie Mac’s View: Chief economist Sam Khater expressed concern about the impact of rising rates on homebuyer enthusiasm during the upcoming busy spring season. The combination of higher rates and housing prices poses challenges to affordability.
Mortgage Bankers Association’s Perspective: President and CEO Bob Broeksmit highlighted that escalating inflation and job data are influencing the upward trajectory of mortgage rates. Additionally, a limited supply of existing homes for sale is exacerbating difficulties for potential buyers entering the market.