After declining slightly over the last three weeks, mortgage rates are rising again. The average 30-year fixed-rate mortgage (FRM) is now back above 7%.
Like everything else connected to money, the move is tied to the Federal Reserve and what it plans to do about interest rates.
“More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board,” said Sam Khater, Freddie Mac’s chief economist.
“This reality, as well as economic signals that have moved sideways over the last few weeks, have resulted in mortgage rates drifting higher as markets continue to dial back expectations of interest rate cuts.”
Current rates
The 30-year FRM averaged 7.03% as of May 30, 2024, up from last week when it averaged 6.94%. A year ago at this time, the 30-year FRM averaged 6.79%.
The 15-year FRM averaged 6.36%, up from last week when it averaged 6.24%. A year ago at this time, the 15-year FRM averaged 6.18%.
Meanwhile, people who purchased homes in 2019 with adjustable-rate mortgages are in for a shock. Those loans reset this year to the current higher rates and many homeowners could see their monthly mortgage payments rise by $1,000 or more.