Mortgage rates rose this week, their first increase since the bottom six weeks in a row, according to the latest information from Freddie Mac.
The 30-year mortgage fixed rate average 6.42% in the week ending December 29, up from 6.27% the previous week and capping a year-long run for homebuyers. the right to double mortgage payments in less than 12 months.
“The housing market remains in recession with declining sales, inventory and prices,” said Sam Khater, Freddie Mac’s chief economist.
“The decrease in sales and the decrease in house prices started early in 2022 but has been reduced recently. Although the strength of the weakness is moderated, the market continues to decline and signs of leading forward suggests that buildings will remain weak throughout the winter,” he added.
One year ago, the 30-year fixed rate was 3.11% – and few predicted that rates of 6% would come as a relief, it has fallen. from above 7%. Homebuyers have seen their purchasing power erode, with higher rates adding hundreds of dollars to their monthly payments.
Mortgage rates are expected to rise through 2022 amid the Federal Reserve’s unprecedented interest rate hikes aimed at curbing inflation. But mortgage rates has fallen in the past few weeks, following various reports indicated that the price may reach its peak.
“Freddie Mac’s fixed rate for a 30-year loan followed in the footsteps of the 10-year Treasury, which rose from 3.45% in the middle of the month to 3.86% yesterday,” the report said. said George Ratiu, the senior economist and chief economist. search on Realtor.com.
“With an eye to the new year, businessmen are weighing the good state of the economy this month against the continued monetary policy of the Federal Reserve,” he added. “On the one hand, the third quarter of the domestic product was revised up twice, the labor market remains on stable levels, prices are decreasing, and the confidence of consumers fell to the highest level in eight months. On the other hand, corporate authorities are feeling more bearish due to high borrowing costs, and the risk of developing The economy. Concerns about the business outlook could prompt many company leaders to freeze hiring, or implement general layoffs in 2023.
Mortgage rates are based on mortgage applications that Freddie Mac receives from thousands of lenders nationwide. The survey only includes borrowers who put down 20% and have better credit. Most buyers with lower down payments or less credit will pay more than the average rate.