Freddie Mac has released the results of its Primary Mortgage Market Survey, showing the 30-year fixed-rate mortgage rose again this week, averaging 6.72%. That’s an increase from 6.54% last week.
“Increasing for the fifth consecutive week, mortgage rates reached their highest level since the beginning of August,” said Sam Khater, Freddie Mac’s chief economist.
“With several potential inflection points happening over the next week, including the jobs report, the 2024 election, and the Federal Reserve interest rate decision, we can expect mortgage rates to remain volatile. Although uncertainty will remain, it does appear mortgage rates are cresting, and we do not expect them to reach the highs that we saw earlier this year.”
Even though affordability is eroding again, the Mortgage Bankers Association (MBA) reports homebuyer affordability improved in September, with the national median payment applied for by purchase applicants decreasing to $2,041 from $2,057 in August.
MBA’s Purchase Applications Payment Index (PAPI) measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).
“Homebuyer affordability conditions improved for the fifth consecutive month, as mortgage rates near the low 6 percent range improved purchasing power for prospective buyers,” said Edward Seiler, MBA’s executive director, Research Institute for Housing America.
“Overall affordability is now at its highest level since August 2022, but the recent jump in rates will likely cause conditions to plateau.”
MBA is forecasting for mortgage rates to be around 6.3% by the end of the year."