In its latest 'Primary Mortgage Market Survey', the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed the following: 30 year fixed rate mortgages now average 6.9%, up from 6.81% last week. The average was 4.99% this time last year.
The 15 year fixed rate mortgage also rose to an average of 6.25%, this is an increase from 6.11% last week. A year ago, the average 15 year rate stood at just 4.26%.
Freddie Mac’s chief economist, Sam Khater, noted that the increase came on the back of a stronger economy, as well as the recent credit downgrade.
He also said: “The combination of upbeat economic data and the US government credit rating downgrade caused mortgage rates to rise this week. Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”
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