Following five weeks of falls, mortgage rates reversed course and saw an increase this week, according to the recent Freddie Mac Primary Mortgage Market Survey.
Sam Khater, Freddie Mac’s Chief Economist, pointed to a “stronger than expected jobs report” as a reason for the increase in rates. Realtor.com Senior Economic Research Analyst Hannah Jones agreed with this, adding that the report put “some upward pressure on rates.”
This week’s numbers:
- The 30-year FRM averaged 6.72%, up from last week when it averaged 6.67%. A year ago at this time, the 30-year FRM averaged 6.89%.
- The 15-year FRM averaged 5.86%, up from last week when it averaged 5.80%. A year ago at this time, the 15-year FRM averaged 6.17%.
Despite the increase in rates, Jones noted that they “remain below year-ago levels, which could spur some buyers into action.”
Khater added, “Despite ongoing affordability challenges in the housing market, we are seeing home purchase and refinance applications respond to the downward trajectory in rates, increasing by 25% and 56%, respectively, compared to the same time last year.”
