rose again this week, bad news for Americans seeking to upgrade or buy their first home.
The average rate on the 30-year fixed mortgage ticked up to 6.90% this week, up from 6.81% a week ago, according to data released Thursday by mortgage buyer Freddie Mac. A year ago, the benchmark home loan rate stood at 4.99%. Meanwhile, the average rate on 15-year fixed mortgages, popular with those refinancing their homes, climbed to 6.25% from 6.11% last week. A year ago, it was 4.26%.
A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California.remains more than double what it was two years ago, when ultra-low rates spurred a wave of home sales and refinancing. Homeowners who locked in those lower borrowing costs two years ago are reluctant to sell and jump into a higher rate on a new property.has driven the Federal Reserve to raise its benchmark interest rate 11 times since March 2022.
A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California. Mortgage rates don’t necessarily mirror the Fed’s rate increases, but tend to track the yield on the 10-year Treasury note. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans.