Real estate agent Kirsten Jordan discusses the impact of Federal Reserve interest rate decisions on the industry and analyzes presidential candidates' housing proposals.
Mortgage interest rates rose slightly, and long-term bonds hit a two-year low last week.
Freddie Mac's latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage It rose to 6.12% from 6.08% last week. A year ago, the average interest rate on a 30-year loan was 7.49%.
A for sale sign is posted in front of a home in Miami, Florida on February 22, 2023. (Photo by Joe Radle/Getty Images/Getty Images)
“Mortgage rates have stopped falling due to a combination of rising geopolitical tensions and a rebound in short-term rates that suggests market enthusiasm for rate cuts is premature,” said Sam Cater, chief economist at Freddie Mac. “There is,” he said.
“Looking at the big picture, mortgage rates have fallen by 1.5 percentage points over the past 12 months, home price growth has slowed, inventory is rising and incomes continue to rise,” Kerr said. Mr. Tarr continued. “As a result, conditions for homebuyers are improving this fall and will continue through the rest of the year.”
Many buyers and sellers are waiting to see if interest rates will fall further. According to Zillow research, about 80% of mortgage holders currently have interest rates below 5%.
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The average interest rate for 15-year fixed mortgages also rose slightly to 5.25% from 5.16% last week. A year ago, the average interest rate on 15-year term bonds was 6.78%.
