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US 30-year fixed mortgage rate rises for a third straight week
The average 30-year fixed rate climbed to 6.58%, compared with 6.74% a year ago, as Freddie Mac cited affordability pressure amid accelerating home price growth.
US mortgage rates rose for the third consecutive week, keeping borrowing costs elevated and further squeezing housing affordability as home price gains pick up, according to Insurance Journal.
Freddie Mac said the average rate on a 30-year, fixed loan increased to 6.58% from 6.55% the prior week. The rate was 6.74% a year earlier, and the report pointed to inflation and borrowing cost risks linked to renewed tensions involving Iran and the resulting energy market volatility.
The housing market is also contending with faster price growth. In mid-July, home prices were up 1.7% from a year earlier, the largest increase in more than three years, with annual gains reaching 8.7% in Rochester, 7.4% in Syracuse, and 6.8% in Albany, while Cape Coral, Florida declined 3%.
Bright MLS Chief Economist Lisa Sturtevant said higher gas prices and concern about inflation rising are creating more strain for would-be buyers, and she expects elevated mortgage rates to result in a slower summer. The article also noted investors are looking for the Federal Reserve to hike interest rates at least by its September meeting, with interest-rate futures reflecting a better than 1-in-3 chance of a move around July 28-29.