Mortgage rates rose slightly from the previous week as investors continued to expect the Federal Reserve to cut interest rates next month.
The average rate on a 30-year fixed-rate mortgage was 6.49%, up from 6.47% last week. Freddie Mac said on Thursday, marking its lowest level in more than a year. A year ago, the average rate for a 30-year fixed-rate loan was 7.09%.
Separately, the average rate for a 15-year fixed mortgage was 5.66%, up from 5.63% a week ago. The rate for the 15-year loan was 6.46% a year ago.
“Although rates rose slightly this week, they are still less than half a percentage point from the same time last year,” Sam Cutter, Freddie Mac’s chief economist, wrote in a statement.
“In 2023, the 30-year fixed-rate mortgage hit nearly 8 percent, putting the brakes on the housing market. Now, the 30-year fixed rate is 6.5 percent and will drop in the coming months as inflation continues to slow. Low prices are a boon for potential buyers and sellers. news.
Despite this week’s rise, the recent downward trend in rates has spurred some activity in the market. Home purchase applications were up 3% from the previous week, but down 8% from the same week a year ago. The Mortgage Bankers Association (MBA) released on Wednesday.
Meanwhile, homeowners are taking advantage of the opportunity to restructure their existing loans.
Home loan refinancing applications were up 35% from the previous week and 118% higher than the same week a year ago, the strongest weekly gain since May 2022, according to MBA.
