Mortgage Rates Rise for Third Week in a Row, Returning to Highs Seen in November
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The numbers: Mortgage rates are up sharply, putting pressure on the housing market once again.
The 30-year fixed-rate mortgage averaged 6.5% as of February 23, according to data released by Freddie Mac on Thursday.
That’s up 18 basis points from the previous week. One basis point is equal to one one-hundredth of a percentage point.
The 30-year rate was last at this level in November 2022.
Last week, the 30-year was at 6.32%, compared with last year, when it was averaging 3.89%.
The average rate on a 15-year mortgage rose to 5.76%, from 5.51% the previous week. The 15-year was at 3.14% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.88% as of Thursday morning.
Mortgage demand fell in the latest week as rates rose, according to a separate report by the Mortgage Bankers Association.
What Freddie Mac said: “The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation,” Sam Khater, chief economist at Freddie Mac, said in a statement.
Khater recommended that buyers shop around for quotes from mortgage lenders.
“Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually by taking the time to shop among lenders to find a better rate,” he said.
Market reaction: The yield on the 10-year Treasury note was trading above 3.89% during the afternoon trading session on Thursday.
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