Mortgage Rates Increase After Month of Declines
The 30-year fixed-rate mortgage rose by five basis points from last week, reaching 6.22%, while the 15-year rate increased nine basis points to 5.50%. This marks a bounce back after a month of consecutive drops, following movements in the 10-year Treasury.
Current Rates Compared to Last Year
- The 30-year fixed-rate mortgage averaged 6.22%, up from 6.17% last week and down from 6.79% a year ago.
- The 15-year fixed mortgage rate climbed to 5.50% from 5.41% last week, compared to 6% during the same period last year.
Expert Insights 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.
Federal Reserve Impact and Market Reaction
The Federal Reserve’s recent benchmark rate cut of 25 basis points has had limited effect on mortgage rates, which have actually risen by three basis points so far. This muted reaction may be attributed to Chair Jerome Powell’s remarks at the Federal Open Market Committee Meeting, which cast doubt on expectations for another rate cut in December.
Since Powell’s comments, the 10-year Treasury yield rose from 3.98% on the morning of the meeting to 4.08% by noon Thursday.
Forecast
According to Zillow's recent observations, the 30-year mortgage rate is expected to stay within the 6% to 7% range for the near future.
Summary: Mortgage rates have edged up after a month of declines, reflecting Treasury trends and Fed signals, but remain more affordable compared to last year, offering potential savings for homebuyers.