Zelman & Associates Executive Vice President Ivy Zelman discusses barriers to home affordability at the Barron’s Roundtable.
Mortgage rates jumped this week to a five-month high, ending the year slightly higher than it started.
The latest from Freddie Mac Primary Mortgage Market Research, published on Thursday, showed that the average rate of the benchmark 30 year fixed mortgage jumped to 6.85%, up from last week’s reading of 6.72%. The average interest rate on a 30-year loan was 6.61% a year ago.
This week’s increase marked the highest level for the 30-year loan since mid-July, when the rate was 6.89 percent, according to data from Freddie Mac. The lowest rate this year was 6.08% at the end of September, and the highest – 7.22% – was reached at the beginning of May.
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A “For Sale” sign is seen on a house in Philadelphia on August 16. (Joe Lamberti/Bloomberg via Getty Images)
“Mortgage rates rose for a second week in a row, recovering from a decline earlier this month,” said Sam Khater, Freddie Mac’s chief economist. “While there is a slight improvement in sale of new and existing homes is encouraging, the market remains plagued by a huge housing shortage. A strong economy could help build momentum heading into the new year and potentially spur buying activity.”
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The average rate on a 15-year fixed mortgage rose to 5.92% from 5.84% last week. A year ago, the 15-year fixed rate averaged 5.95%.
2024-12-26 18:39:41
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