Mortgage Rates Rise After a Month of Decline
The 30-year fixed-rate mortgage increased by five basis points to 6.22%, reversing a month of steady decreases. Meanwhile, the 15-year fixed mortgage climbed nine basis points to 5.50%.
Current Mortgage Rate Trends
- The 30-year fixed-rate mortgage averaged 6.22%, up from 6.17% last week, according to Freddie Mac’s Primary Mortgage Market survey.
- A year ago, the 30-year rate was significantly higher at 6.79%.
- The 15-year fixed mortgage rose from 5.41% to 5.50%, compared to 6% a year ago.
Expert Insight on Affordability
"On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving," said Sam Khater, Freddie Mac's chief economist.
Impact of Federal Reserve Actions
The Federal Reserve’s recent 25 basis point rate cut has not yet eased mortgage rates, which have actually increased by three basis points overall. This limited effect is possibly linked to Chair Jerome Powell’s remarks during the Federal Open Market Committee Meeting, casting doubt on further cuts in December.
Following Powell’s comments, the 10-year Treasury yield rose from 3.98% on the morning of the meeting to 4.08% by Thursday noon.
Outlook on Mortgage Rates
"The 30-year rate will remain confined within the 6%-7% range for the time being," according to Zillow.
Overall, mortgage rates are showing slight upward movement but remain more affordable than last year.
Author’s summary: Mortgage rates rose slightly after a month of declines, with affordability improving compared to last year despite limited impact from the Federal Reserve’s rate cut and looming uncertainty on future policy changes.