David Bahnsen, Managing Partner of Bahnsen Group, discusses market volatility and analyzes the real estate market on The Big Money Show.
Mortgage rates continued to rise this week as demand in the stagnant housing market remained largely flat.
Freddie Mac's latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage It rose to 6.72% from 6.54% last week. A year ago, the average interest rate on a 30-year loan was 7.76%.
“For Sale” sign on a home in Philadelphia, Pennsylvania on August 16, 2024. (Joe Lamberti/Bloomberg via Getty Images/Getty Images)
“Mortgage rates have risen for the fifth consecutive week, reaching their highest level since early August,” said Sam Cater, chief economist at Freddie Mac. “Mortgage rates are expected to remain volatile as several potential inflection points occur next week, including the jobs report, the 2024 election, and the Federal Reserve's interest rate decisions. ”
“While uncertainty remains, mortgage rates appear to be on an upward trend and we do not expect them to reach the highs seen earlier this year,” Carter added.
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 5.99% from 5.71% last week. A year ago, interest rates on 15-year fixed bonds averaged 7.03%.
