Mortgage interest Rates rose this week but remain the lowest in three years, mortgage buyer Freddie Mac said Thursday.
Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed the average interest rate on the benchmark Mortgage with a fixed term of 30 years rose to 6.09% from last week’s 6.06%.
A year ago, the average interest rate on a 30-year loan was 6.96%.
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The average interest rate on a 30-year mortgage rose to 6.09% this week. (Ty Wright/Bloomberg via Getty Images)
“With the economy improving and the average 30-year mortgage rate nearly a percentage point lower than last year, more homebuyers are entering the market,” said Sam Khater, Freddie Mac’s chief economist. “Buyers should always shop for the best rate as multiple quotes could potentially save them thousands.”
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Mortgage rates are influenced by several factors, including the Federal Reserve and geopolitics. Although mortgage rates are not directly affected by the Fed’s interest rate decision, they do closely monitor 10-year Treasury yields. The ten-year yield fluctuated around 4.25% on Thursday afternoon.
Meanwhile, the average interest rate on a 15-year mortgage rose to 5.44%, up from last week’s 5.38%.
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A real estate agent prepares a house for sale. (Getty Images)
Anthony Smith, senior economist at Realtor.com, said recent policy decisions have contributed to the recent volatility, including President Donald Trump’s announcement that Fannie Mae and Freddie Mac would buy $200 billion in mortgage-backed securities.
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“The announcement has contributed to recent interest rate declines, although uncertainty around implementation may limit the impact,” Smith said. “A separate executive order outlined a framework to limit institutional investor participation in housing markets, but because key enforcement details remain undefined, near-term impacts are likely to be limited and concentrated in select metro areas.”
