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Mortgage Rates Are Nearing 7% | Freddie Mac
By Leslie Cook MONEY RESEARCH COLLECTIVE
According to Freddie Mac’s benchmark survey, the average rate on a 30-year fixed-rate mortgage has ticked up to 6.90%
This week’s mortgage rates continued to move closer to 7%.
The average rate on a 30-year fixed-rate mortgage rose to 6.90%, an increase of 0.09 percentage points over the past seven days. The 15-year fixed-rate loan moved up 0.14 percentage points, to average 6.25%.
Mortgage rates keep climbing
This week’s mortgage rates advance on the heels of positive labor and other economic data.
June’s strong readings for gross domestic product and personal spending have helped push bond yields higher, taking mortgage rates along with them, said Jeff Tucker, senior economist at Zillow, in emailed comments.
As contradictory as it may seem, “All these renewed signals of strong underlying economic growth, which tends to raise interest rates, have offset much of the encouraging downward progress on inflation,” he said.
Future rate movement will largely hinge on soon-be-released data on consumer prices, employment, wage growth and other economic indicators.
Last week, the Federal Reserve announced another 0.25 percentage point increase to the federal funds rate, raising it to a target range of 5.35% to 5.50%; the highest level since 2001.
At a press conference following the Fed’s announcement, chairman Jerome Powell emphasized the central bank’s commitment to bringing inflation down to a target range of 2% (inflation was running at 3% in June).
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Leslie Cook is the Lead Mortgage Reporter covering mortgages and the housing market for Money. She has been a guest on the This Morning with Gordon Deal radio show and served as moderator for ServiceLink's State of Homebuying webinar. Her career started as a business reporter over 30 years ago, covering the computer and human resources beats for Caribbean Business newspaper in San Juan, Puerto Rico. She graduated Cum Laude from Bryn Mawr College in Pennsylvania with a bacheloru2019s degree in history.