Current:Home > MarketsAverage long-term US mortgage rate climbs back to nearly 7% after two-week slide-DB Wealth Institute B2 Expert Reviews
Average long-term US mortgage rate climbs back to nearly 7% after two-week slide
View Date:2024-12-23 18:25:31
LOS ANGELES (AP) — The average long-term U.S. mortgage rate climbed back to nearly 7%, just under where it was two weeks ago, pushing up borrowing costs for home shoppers with the spring homebuying season underway.
The average rate on a 30-year mortgage rose to 6.87% from 6.74% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.42%. The average rate is now just below where it was two weeks ago.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, pushing the average rate to 6.21% from 6.16% last week. A year ago it averaged 5.68%, Freddie Mac said.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans.
“After decreasing for a couple of weeks, mortgage rates are once again on the upswing,” said Sam Khater, Freddie Mac’s chief economist.
Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Federal Reserve makes does with its short-term interest rate can influence rates on home loans.
After climbing to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has remained below 7% since early December amid expectations that the inflation had cooled enough for the Fed to begin lowering its short-term interest rate early this year. But a spate of stronger-than-expected reports on inflation, the job market and the economy in recent weeks dimmed that outlook, sending mortgage rates higher through most of February.
Many economists expect that mortgage rates will ultimately ease moderately this year, but that’s not likely to happen before the Federal Reserve begins cutting its benchmark interest rate. The central bank signaled again on Wednesday that it expects to make three rate cuts this year, but not before it sees more evidence that inflation is slowing.
The U.S. housing market is coming off a deep, 2-year sales slump triggered by a sharp rise in mortgage rates and a dearth of homes on the market. The overall decline in rates since their peak last fall has helped lower monthly mortgage payments, providing more financial breathing room for homebuyers facing rising prices and a shortage of homes for sale this year. Sales of previously occupied U.S. homes rose in February from the previous month to the strongest pace in a year.
Still, the average rate on a 30-year mortgage remains well above where it was just two years ago at 4.42%. That large gap between rates now and then has helped limit the number of previously occupied homes on the market by discouraging homeowners who locked in rock-bottom rates from selling.
veryGood! (53527)
Related
- Cold case arrest: Florida man being held in decades-old Massachusetts double murder
- Mental health support for toddlers has lagged in Texas. That’s now changing.
- As schools ban mobile phones, parents seek a 'safe' option for kids
- Luke Combs, Eric Church team up for Hurricane Helene relief concert in North Carolina
- Only 8 monkeys remain free after more than a week outside a South Carolina compound
- 27 Best Accessories Deals on Trendy Jewelry, Gloves, Scarves & More to Shop This October Prime Day 2024
- Melinda French Gates will give $250M to women’s health groups globally through a new open call
- Geomagnetic storm could hinder radios, satellites as Hurricane Milton makes landfall
- Shawn Mendes Confesses He and Camila Cabello Are No Longer the Closest
- A Celebration of Bella Hadid's Riskiest Looks: Sheer Dresses, Catsuits and Freeing the Nipple
Ranking
- Voters in Oakland oust Mayor Sheng Thao just 2 years into her term
- These Are the Best October Prime Day 2024 Essentials That Influencers (And TikTok) Can’t Live Without
- How FEMA misinformation brought criticism down on social media royalty 'Mama Tot'
- 4 people, dog rescued after small plane crashes into Gulf in Hurricane Milton evacuation
- Mariah Carey's Amazon Holiday Merch Is All I Want for Christmas—and It's Selling Out Fast!
- Social Security’s scheduled cost of living increase ‘won’t make a dent’ for some retirees
- What presidential campaign? The Electoral College puts most American voters on the sidelines
- From baby boomers to Gen Z, no one knows how to talk about sex. Here's why.
Recommendation
-
Former Disney Star Skai Jackson Is Pregnant, Expecting First Baby With Her Boyfriend
-
Hoda Kotb Shares Update on 5-Year-Old Daughter Hope One Year After Health Scare
-
Everything you need to know about charging your EV on the road
-
Time to evacuate is running out as Hurricane Milton closes in on Florida
-
‘Emilia Pérez’ wouldn’t work without Karla Sofía Gascón. Now, she could make trans history
-
Top Prime Day 2024 Deals: 34 Gen Z-Approved Gifts from Apple, Laneige, Stanley & More That Will Impress
-
Patrick says Texas Legislature will review Deloitte’s contracts after public loan project scandal
-
Escaped cattle walk on to highway, sparking 3 car crashes and 25 animal deaths in North Dakota