Mortgage rates tick higher, but buyers show signs of confidence
Mortgage rates jumped this week, mortgage buyer Freddie Mac said Thursday.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage climbed to 6.52% from last week's reading of 6.48%.
The average rate on a 30-year loan was 6.84% a year ago.
MORTGAGE RATES JUMP AS INFLATION FEARS, IRAN WAR WEIGH
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage climbed to 6.52% from last week's reading of 6.48%. (iStock)
"The 30-year fixed-rate mortgage averaged 6.52% this week," Sam Khater, chief economist at Freddie Mac, said in a statement.
"Stronger employment momentum has helped existing home sales reach a five-month high. Importantly, we're seeing homebuyers look past the short-term rate fluctuations and actively enter the market, signaling renewed confidence in homeownership opportunities."
FORECLOSURES HIT HIGHEST LEVEL IN 6 YEARS AS INSURANCE, PROPERTY TAX COSTS SQUEEZE HOMEOWNERS
The average rate on a 15-year fixed mortgage rose to 5.84% from last week's reading of 5.79%. (iStock)
The average rate on a 15-year fixed mortgage rose to 5.84% from last week's reading of 5.79%.
The U.S. added 172,000 jobs in May, beating forecasts, while unemployment held steady at 4.3%. The strong report may lower hopes for near-term interest rate cuts, according to Realtor.com economist Jiyai Xu.
The Labor Department also reported that the Consumer Price Index rose 4.2% year over year in May, the highest since April 2023. (Getty Images)
The Labor Department also reported that the Consumer Price Index rose 4.2% year over year in May, the highest since April 2023.
Core inflation, excluding food and energy, rose 2.9%, according to Realtor.com.
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"What began as a question of when the Fed would cut rates has quietly shifted," Xu said in a statement. "Ongoing global tensions and rising energy prices have prompted some to wonder whether a rate increase may be back on the table."