Mortgage Rates Rise For Third Consecutive Week

(RTTNews) - Mortgage rates, or interest rates on home loans, increased for the third consecutive week, according to mortgage provider Freddie Mac (FMCC.OB).

The 30-year FRM averaged 6.90 percent as of February 22, 2024, up from last week when it averaged 6.77 percent. A year ago at this time, the 30-year FRM averaged 6.50 percent.

The 15-year FRM averaged 6.29 percent, up from last week when it averaged 6.12 percent. A year ago at this time, the 15-year FRM averaged 5.76 percent.

"Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates," said Sam Khater, Freddie Mac's Chief Economist. "Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability."