Mortgage rates rose to the highest level since November 2023, mortgage buyer Freddie Mac said Thursday.
Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average rate on the benchmark 30-year fixed mortgage rose to 7.28% from last week’s reading of 7.03%.
The average rate on a 30-year loan was 6.34% a year ago. Thursday’s figure is the highest since Nov. 22, 2023, when the average rate on the 30-year fixed mortgage was 7.29%.
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“With mortgage rates on their current trajectory, the housing market continues to be supported by favorable economic conditions,” said Sam Khater, Freddie Mac’s chief economist.
The average rate on a 15-year fixed mortgage climbed to 6.6% from last week’s reading of 6.42%.
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Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Though mortgage rates are not directly affected by the Fed’s interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield hovered around 5.23% as of Thursday afternoon.
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“The 30-year mortgage rate has risen nearly a full percentage point over the past year, dramatically affecting buyer budgets,” said Realtor.com senior economist Hannah Jones. “That increase has added more than $200 to the monthly principal and interest payment on a median-priced home, even as the median price has fallen year-over-year. In a volatile rate environment, the best thing buyers can do is rate-proof their budget.”
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Jones added that the headline rate is only part of the picture.
“Even in the same rate environment, most borrowers’ rates span nearly a full percentage point depending on their credit score, down payment and choice of lender, a difference worth roughly $28,400 in buying power,” she said. “Planning for both the market and their own financial profile can help buyers approach homebuying with confidence.”
