Mortgage rates rise for the second week, reaching 6.77%

The 30-year fixed-rate mortgage averaged 6.77% in the week ending February 15, up from 6.64% the previous week, according to data from Freddie Mac. A year ago, the average 30-year fixed-rate was 6.32%.

“On the heels of consumer prices rising more than expected, mortgage rates increased this week,” said Sam Khater, Freddie Mac’s chief economist.

“The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season,” said Khater in a statement.

Mortgage applications to buy a home so far in 2024 are down in more than half of all states compared to a year earlier, Khater said.

“Mortgage rates have been volatile due to strong employment data, rising last week and leading to a 2% drop in applications,” said Bob Broeksmit, CEO of Mortgage Bankers Association in a release.

The US economy added a stunning 353,000 jobs in January, almost double expectations, according to the latest monthly employment snapshot from the Labor Department.

Increasing supply levels and lower mortgage rates would be the two main drivers of any meaningful jump in home sales this spring, Broeksmit said.

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 is a developing story and will be updated.

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