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mortgage interest rate Home prices rose for the sixth straight week as purchase demand continued to decline in the stagnant housing market.
Freddie Mac's latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage It rose to 6.79% from 6.72% last week. A year ago, the average interest rate on a 30-year loan was 7.50%.
See homes for sale in Austin, TX on May 22, 2024. (Brandon Bell/Getty Images/Getty Images)
“In the current market environment, it's clear that purchase demand is very sensitive to mortgage rates,” said Sam Cater, chief economist at Freddie Mac. “As soon as interest rates started rising in early October, purchase offers fell, falling 10% last month.”
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 to 6% from 5.99% last week. A year ago, the average interest rate on a 15-year fixed bond was 6.81%.
