The numbers: Mortgage rates rose for the second time in a week.
The 30-year fixed-rate mortgage averaged 6.43% as of April 27, according to data released by Freddie Mac on Thursday.
The 30-year rate was last at this level in mid-March.
It’s up 4 basis points from the previous week. One basis point is equal to one hundredth of a percentage point.
Last week, the 30-year was at 6.39%, and last year, it was averaging 5.1%.
The average rate on the 15-year mortgage fell to 5.71% from 5.76% the previous week. The 15-year was at 4.4% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging 6.57% as of Thursday afternoon.
What Freddie Mac said: While the 30-year rate rose, “with the rate of inflation decelerating, rates should gently decline over the course of 2023,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“Incoming data suggest the housing market has stabilized from a sales and house price perspective,” he added. “The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”
What are they saying? The National Association of Realtors echoed Freddie Mac’s sentiment that rates will fall over the course of this year.
But one industry group noted that buyers are less stressed by rates than they are by inventory challenges.
“Financial markets are anticipating that the Federal Reserve will raise short-term rates at its next meeting, which has pushed Treasury yields and mortgage rates higher in recent weeks,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.
“Despite the higher rates, purchase applications increased last week but remained below year-ago levels,” he added. “High home prices and low supply continue to be obstacles for households wanting to buy a home this spring.”
Market reaction: The yield on the 10-year Treasury note
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was trading above 3.5% during the afternoon session on Thursday.
