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Mortgage rates soared to a five-month high this week, ending the year slightly higher than they started.
Freddie Mac's latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage rose to 6.85%, up from 6.72% last week. A year ago, the average interest rate on a 30-year loan was 6.61%.
This week's increase was the highest rate for a 30-year loan since mid-July (6.89%), according to Freddie Mac data. The lowest interest rate this year was 6.08% at the end of September, and the highest was 7.22% at the beginning of May.
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“Mortgage rates rose for the second week in a row, recovering from declines from earlier this month,” said Sam Cater, chief economist at Freddie Mac. “While it is encouraging to see a slight improvement in new and existing home sales, the market remains plagued by a severe undersupply of homes. Strong economy builds momentum heading into the new year, driving purchasing activity.” There is a possibility that
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The average interest rate for a 15-year fixed mortgage rose to 5.92% from 5.84% last week. A year ago, the average interest rate on a 15-year fixed bond was 5.95%.
