Mortgage rates climb north of 6.5% for first time since August
Mortgage rates climbed for the fourth consecutive week, hitting the highest levels since August and adding a fresh chill to the housing market as it enters a seasonal slow period.
The average 30-year fixed interest rate crept up to 6.54% in the week through Wednesday, according to Freddie Mac data. Last week, it averaged 6.44%.
Fifteen-year mortgage rates also climbed to 5.71%, up from 5.63%.
Mortgage rates have been mirroring an increase in Treasury yields in recent weeks. The 10-year Treasury, which most closely matches mortgage rates, yielded 4.2% on Thursday, after nearing the highest levels since July a day earlier.
“Over the last few years, there has been a tension between downbeat economic narrative and incoming economic data stronger than that narrative. This has led to higher-than-normal volatility in mortgage rates, despite a strengthening economy,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
Other data released this week underscores the obstacles weighing down the market. Sales of existing homes in September fell to the lowest level since 2010, even though mortgage rates were lower last month.
Applications to refinance or purchase a home also fell compared to a week earlier, according to the Mortgage Bankers Association. Purchase applications dropped 5% and refinancing applications were down 8% as both retreated to the lowest levels since July.
Despite the decrease, purchase applications are still running ahead of volumes seen a year ago, when average mortgage rates were more than a percentage point higher than current levels.
Read more: Mortgage and refinance rates today, October 24, 2024: 30-year rate inches closer to 6.5%
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