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Mortgage rates rise to 7.4%: Freddie Mac
Fox Business • • general
Key Points:
- Mortgage rates have increased for the seventh consecutive week, with the average 30-year fixed mortgage rate rising to 7.4% from 7.28% last week, according to Freddie Mac's latest survey.
- The 30-year mortgage rate is significantly higher than the 6.3% average recorded a year ago, driven by upward pressure from the 10-year Treasury yield, which averaged 5.28% this week.
- Rising bond yields, inflation expectations, and increased government debt issuance are contributing to higher mortgage rates, which closely follow the 10-year Treasury yield.
- The increase in mortgage rates has negatively impacted the housing market, leading to year-over-year declines in pending home sales and sellers reducing prices at rates not seen in four years.
- Despite affordability challenges for many buyers, cash purchasers are benefiting from lower home prices and increased inventory, with prices down 1.4% and for-sale inventory up 5.4% year over year.
