Mortgage rates are still ticking up, thanks to strong economic data including good jobs reports and stubborn core inflation, economists say, noting that rates are still expected to come down in the months ahead as data falls more in line with expectations.
This week, the 30-year fixed-rate mortgage averaged 6.54%, up from 6.44% last week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac, released Thursday.
The continued strength in the economy drove mortgage rates higher once again this week,” said Sam Khater, Freddie Mac’s chief economist. “Over the last few years, there has been a tension between a downbeat economic narrative and incoming economic data stronger than that narrative. This has led to higher-than-normal volatility in mortgage rates, despite a strengthening economy.”
This week’s numbers:
- The 30-year FRM averaged 6.54% as of October 24, 2024, up from last week when it averaged 6.44%. A year ago at this time, the 30-year FRM averaged 7.79%.
- The 15-year FRM averaged 5.71%, up from last week when it averaged 5.63%. A year ago at this time, the 15-year FRM averaged 7.03%.
“This rapid run-up in mortgage rates has sapped some of the burgeoning enthusiasm in the market, which was spurred by near-6.0% rates in September,” said Hannah Jones, Realtor.com senior economic research analyst. “However, rates are expected to generally move lower in the coming months, despite recent volatility. Stronger-than expected economic data, including robust employment data and stubborn core inflation, have prevented downward progress in mortgage rates over the last month. The antidote to the recent climb will be if upcoming economic data falls more in line with expectations.”
