Suburban street with "For Sale" sign and couple looking at new home
Mortgage rates saw a slight increase this week, with the average 30-year fixed loan climbing to 6.52% from 6.48% in the previous week, according to Freddie Mac. This uptick comes as homebuyers continue to demonstrate confidence by actively participating in the market.
The average rate for a 30-year fixed mortgage is now 6.52%, a marginal rise from last week’s 6.48%. A year ago, this rate stood at 6.84%. Sam Khater, chief economist at Freddie Mac, noted that strong employment momentum has contributed to a five-month high in existing home sales. “Importantly, we’re seeing homebuyers look past the short-term rate fluctuations and actively enter the market, signaling renewed confidence in homeownership opportunities,” Khater stated.
For the 15-year fixed mortgage, the average rate also edged up to 5.84% from 5.79% last week.
Recent economic data, including a stronger-than-expected jobs report for May which saw the U.S. add 172,000 jobs and unemployment holding steady at 4.3%, may temper expectations for imminent interest rate cuts by the Federal Reserve. Additionally, the Consumer Price Index (CPI) for May rose 4.2% year-over-year, the highest since April 2023, with core inflation (excluding food and energy) at 2.9%, according to Realtor.com.
These economic indicators, coupled with ongoing global tensions and rising energy prices, have even led some analysts to reconsider the possibility of a rate increase, shifting the conversation from when the Fed might cut rates to whether a hike might be back on the table.
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