Key insights
- Mortgage rates edged higher, with the 30-year fixed rate reaching 6.30%. Despite this increase, purchase applications are up over 20% year-over-year, driven by modestly lower rates in recent weeks and increased housing inventory. This suggests some resilience in the housing market, but rising rates could eventually dampen demand and negatively impact housing-related equities.
Investing.com -- Freddie Mac (OTCQB:FMCC) reported that the 30-year fixed-rate mortgage averaged 6.30% as of Thursday, up from 6.23% the previous week. A year ago, the 30-year fixed-rate mortgage stood at 6.76%.
The 15-year fixed-rate mortgage averaged 5.64%, up from 5.58% the prior week. A year ago, the 15-year fixed-rate mortgage was at 5.92%.
Sam Khater, Freddie Mac’s Chief Economist, said purchase applications have risen to over 20% above year-ago levels as rates declined modestly in recent weeks. Khater noted that prospective buyers are responding to both lower rates and increased inventory compared to the past few years.
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