(news nation) — average mortgage interest rates will end the year at a financially high level.
In the housing market this week, 30-year mortgage rates hit 6.85%, the highest level since July, according to data from Freddie Mac. This is up from last week and up from 6.61% during the same period last year.
“While we are pleased to see some improvement in new and existing home sales, the market remains plagued by a severe undersupply of housing,” said Sam Cater, chief economist at Freddie Mac. news release. “A strong economy could build momentum into the new year and drive purchasing activity.”
The 15-year mortgage rate also rose from 5.92% last week to 6% this week.
These mortgage rates were set after the Federal Reserve cut interest rates last week. Market players are now focused on how President-elect Donald Trump's policy initiatives will play out next year and how that will affect inflation and, by extension, mortgage rates.
