The base 30-year rate rose to 6.73%.
Average rate per 30 year old fixed mortgage rose to 6.73% on Thursday from 6.65% last week, according to mortgage buyer Freddie Mac. A year ago, the average was 3.85%.
15-year fixed rate mortgages averaged 5.95% compared to last week when they averaged 5.89%. A year ago at the same time, the 15-year FRM averaged 3.09%.
Despite fluctuations, mortgage rates tend to rise. Mortgage rates, which peaked at 7.08% in November, remain nearly double what they were a year ago.
“Mortgage rates continue to rise as the Federal Reserve signals a more aggressive stance on monetary policy,” said Sam Hater, chief economist at Freddie Mac.
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The increase in the interest rate by the Federal Reserve has increased the cost of borrowing. With persistent inflation and recent job growth data, the Fed has signaled that it intends to become more hawkish, which is likely to push borrowing costs even higher.
Inflation has been an unsystematic situation for the Federal Reserve as the central bank attempts to control rising prices with higher interest rates, which could trigger a recession or economic downturn.
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Hater continued: “In general, consumers spend in sectors that are not sensitive to interest rates, such as travel and eating out. However, interest rate sensitive sectors such as housing continue to suffer. As a result, potential home buyers continue to face increasing affordability and inventory issues.”
The central bank’s rate setting committee meets on 21 and 22 March.
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Credit: www.foxbusiness.com /