Average 30-Year Mortgage Rate Rises Slightly
The interest rate on a 30-year mortgage rose to 6.67% from 6.65% last week. The cost of credit on a 15-year fixed-rate mortgage rose to 5.83% from 5.8%.
NEW YORK – The average interest rate on a 30-year mortgage in the United States rose slightly for the second week in a row, a modest setback for potential homebuyers as the spring homebuying season intensifies.
The interest rate rose to 6.67% from 6.65% last week, mortgage broker Freddie Mac said Thursday. A year ago, the average rate was 6.87%.
Including this week, the average interest rate on 30-year mortgages has only risen twice in the past nine weeks, a welcome trend for aspiring homebuyers struggling to afford a home after years of rising housing prices.
“The 30-year fixed-rate mortgage has remained below 7% for nine consecutive weeks, which is beneficial to potential buyers and sellers alike,” said Sam Khater, Freddie Mac’s chief economist.
The cost of borrowing for 15-year fixed-rate mortgages, popular with homeowners refinancing their mortgages, also rose this week, pushing the average rate to 5.83 percent from 5.8 percent last week. A year ago, the rate averaged 6.21 percent, according to Freddie Mac.
Mortgage rates are affected by several factors, including bond market investors’ expectations of future inflation, global demand for U.S. Treasuries, and the Federal Reserve’s interest rate policy decisions.
After climbing to just above 7% in mid-January, the average interest rate on a 30-year mortgage has fallen, mostly due to moves in the 10-year Treasury yield, which lenders use as a guide to pricing mortgages.
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