The latest data released by Freddie Mac indicates a slight increase in mortgage rates, reflecting the continued confidence of the U.S. consumer in the economy.
Rates Overview
- The 30-year fixed-rate mortgage stood at 6.81% as of July 27, a marginal rise compared to the previous week's rate of 6.78%.
- The average rate for a 15-year mortgage rose to 6.11% from 6.06% last week, while it was at 4.58% a year ago.
Freddie Mac Report
Freddie Mac, basing its findings on thousands of mortgage applications received from lenders, states that higher interest rates are impacting interest rate-sensitive sectors, namely housing. However, there is a silver lining.
Chief economist at Freddie Mac, Sam Khater, states that despite the dampening effect on housing activity, overall U.S. consumer confidence remains unwavering. In fact, the Conference Board's Consumer Confidence Index for July 2023 has surged to a two-year high. Khater believes this rise in consumer confidence could result in increased spending and potentially generate more interest in the housing market.
Insights from Mortgage News Daily
According to Mortgage News Daily, the 30-year fixed-rate mortgage was averaging at 6.95% as of Thursday afternoon. While rates are expected to fall to around 6% by the end of the year, the following months may experience some volatility.
Prospective Buyers Cautioned
Bob Broeksmit, president and CEO of the Mortgage Bankers Association, noted a slight decrease in applications for home purchases last week. Many prospective buyers are adopting a cautious approach due to affordability challenges and high mortgage rates.
Stay tuned for updates on mortgage rates as the market landscape continues to evolve.
