Mortgage rates inch up for the second week in a row, landing at 6.66%

Washington, DC (CNN) — Mortgage rates ticked up this week for the second week in a row, but remain more than a full percentage point lower than their high last year.

Posted 5:03 p.m. Jan 11 — Updated 5:03 p.m. Jan 11

Anna Bahney

, CNN

CNN — Washington, DC (CNN) — Mortgage rates ticked up this week for the second week in a row, but remain more than a full percentage point lower than their high last year.

The 30-year fixed-rate mortgage averaged 6.66% in the week ending January 11, up from 6.62% the previous week, according to data from Freddie Mac released Thursday. A year ago, the average 30-year fixed-rate was 6.33%.

Even with the past two week’s increases, mortgage rates are making smaller moves than during the nine-week drop at the end of 2023 and are still more than a full percentage point lower than their highest levels of last year: 7.79%. This continues to bring improved affordability for homebuyers who’ve been struggling in one of the least affordable markets in decades.

“Mortgage rates have not moved materially over the last three weeks and remain in the mid-six percent range, which has marginally increased homebuyer demand,” said Sam Khater, Freddie Mac’s chief economist, in a statement.

But, he added, even this slight uptick in demand, combined with inventory that remains tight, continues to cause prices to rise faster than incomes.

“Affordability remains a major headwind for buyers,” said Khater. “Potential homebuyers should look closely at existing state and local resources, such as down payment assistance programs, which can considerably help defray closing costs.”

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. A current buyer’s rate may be different.

This story is developing and will be updated.

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