OSAIC Chief Market Strategist Phil Blancato discusses the Fed’s interest rate plans and the impact of tariffs on inflation on “making money.”
Mortgage fees have skyrocketed this week, mortgage buyer Freddie Mac said Thursday as President Donald Trump’s tariffs led to instability in the bond market.
Freddie Mac’s latest primary mortgage market research, released Thursday, showed that the average rate for benchmark 30-year fixed mortgages rose to 6.83% from last week’s 6.62% reading.
The average rate for a 30-year loan was 7.1% a year ago.
“The 30-year fixed-rate mortgage has been engraved, but for the 13th consecutive week it has fallen below the 7% threshold,” said Samkater, chief economist at Freddie Mac. “At this point last year, the price reached 7.1%, but demand for the purchasing application is 13% lower than today. It’s a clear indication that this spring’s home view-in season is off to a stronger start.”
Mortgage fees track 10 years of financial yields traded at 4.5% last week. In 2010, it was trading above 4.3% as of Thursday afternoon, far surpassing the bottom 4% level seen recently on April 4th.
Higher yields can lead to increased borrowing costs for consumers and businesses, making bonds in stocks more competitive investments.
Is the US housing market a buyer-friendly market?
The average 15-year fixed mortgage rate rose to 6.03% from last week’s reading of 5.82%. 1 year ago rate 15-year fixed note Average 6.39%.
Reuters contributed to this report.
