After decreasing the previous two weeks, mortgage rates went back on the rise this week, with the average rate for a 30-year, fixed-rate mortgage increasing to 6.87%, up from 6.74% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.42%.
“After decreasing for a couple of weeks, mortgage rates are once again on the upswing,” says Sam Khater, chief economist for Freddie Mac, in a statement. “As the spring homebuying season gets underway, existing home inventory has increased slightly and new home construction has picked up.
“Despite elevated rates, homebuilders are displaying renewed confidence in the housing market, focusing on the fact that there is a good amount of pent-up demand, an ongoing supply shortage and expectations that the Federal Reserve will cut rates later in the year,” Khater adds.
For the week ended March 21, the average rate for a 15-year fixed-rate mortgage was 6.21%, up from 6.16% last week and up from 5.68% a year ago.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume dipped 1.6% during the week ended March 15, as mortgage rates increased.
Photo: Alison Pang