Still on the upswing, the average 30-year fixed rate mortgage ticked up over 7% this week, marking its fifth straight week of increases and hitting their highest point since last May.
According to Freddie Mac’s latest Primary Mortgage Market Survey® (PMMS®), this week the average 30-year fixed-rate mortgage (FRM) reached 7.04%, up from last week’s average of 6.93%.
“Mortgage rates ticked up for the fifth consecutive week and crossed seven percent for the first time since May of 2024,” said Sam Khater, Freddie Mac’s Chief Economist. “The underlying strength of the economy is contributing to this increase in rates. Despite rising rates, Freddie Mac research highlights that consumers can save money if they shop for several different lender quotes.”
On the plus side, this week’s data reporting period largely covered the time before the release of Wednesday’s consumer price inflation data, Realtor.com pointed out, which has ushered in a decent reprieve in rates that was not picked up in its latest reading.
“I expect mortgage rates to stop climbing in the second half of January,” said Realtor.com Chief Economist Danielle Hale. “The new administration, the Fed’s late-month meeting, and early February labor data will introduce new information for the market to digest and potential volatility in early February. On the bright side for shoppers hoping for lower rates, the market does not expect the Fed to move too early in the year, which increases the possibility of a surprise that could nudge rates lower.”
This week’s data:
- The 30-year FRM averaged 7.04% as of January 16, 2025, up from last week when it averaged 6.93%. A year ago at this time, the 30-year FRM averaged 6.60%.
- The 15-year FRM averaged 6.27%, up from last week when it averaged 6.14%. A year ago at this time, the 15-year FRM averaged 5.76%.’
For the full report, click here.
