David Bernsen, Managing Partner of Bernsen Group, discusses market volatility and analyzes the real estate market on “The Big Money Show.”
Mortgage rates continued their upward trajectory this week, rising for the first month in a row, further weighing down demand 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 6.54% from 6.44% last week. A year ago, the average interest rate on a 30-year loan was 7.79%.
A “For Sale” sign is seen in front of a home in San Jose, California, on September 5th. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
“Mortgage rates have risen again this week as the economy continues to perform well,” said Sam Cater, chief economist at Freddie Mac. “In recent years, there has been a tension between the economic downturn narrative and the release of stronger economic data than that narrative. This has led to lower mortgage rates despite a strong economy. Volatility is higher than normal.”
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 5.71% from 5.63% last week. A year ago, the average interest rate on 15-year term bonds was 7.03%.
