Mortgage rates have increased for five consecutive weeks, sidelining potential buyers in the middle of the spring homebuying season.
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The 30-year fixed-rate mortgage hit 6.46% this week, an eight-basis-point jump from last week’s 6.38% and the highest mark since early September, according to the Freddie Mac Primary Mortgage Market Survey. The 30-year rate is up 46 basis points month over month, but still down from 6.64% the same week last year.
The 15-year FRM saw a slight uptick from 5.75% to 5.77% this week after a 21-basis-point spike last week. This compares with 5.82% from a year ago.
“With spring homebuying season in full swing, aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes,” said Sam Khater, Freddie Mac’s chief economist, in a press release Thursday.
The 30-year rate dropped below 6% in February, potentially setting up a much-improved spring buying season, but the Iran war has boosted the 10-year Treasury yield up from 3.96% to 4.31%, and mortgage rates along with it, over the last month or so.
President Donald Trump addressed the nation Wednesday night in regards to the Iran war, saying it will end “shortly” as it enters its second month. While the lasting impacts of the war are unknown, Trump said the economy will rebound.
“Our economy is strong and improving by the day, and it will soon be roaring back like never before,” he said. “It will top the levels that it was a month ago.”
Historically high home prices and mortgage rates have pushed buyers out of the market, resulting in an overabundance of sellers. There were an estimated 630,000, or 46.3%, more home sellers than buyers in the United States in February, Redfin found.
“Applications declined for both refinances and purchases as demand remains highly rate-sensitive despite increased inventory,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association. “Looking ahead, stability in the mortgage rate environment will be key to bringing buyers back into the market.”
Mortgage applications fell 10.4% for the week ending March 27, according to the MBA weekly survey. Purchases dropped 3%, while refinances plummeted 17% week over week.