Freddie Mac’s latest report reveals an increase in mortgage rates. According to the Primary Mortgage Market Survey released today, the 30-year fixed-rate mortgage (FRM) averaged 6.79% as of June 1, 2023, up from the previous week’s average of 6.57%.
Sam Khater, Freddie Mac’s Chief Economist, commented, “Mortgage rates jumped this week as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike.”
Over the past few months, there has been steady demand for home purchases, particularly in the low to mid six percent range. However, industry experts predict that this demand may weaken as rates approach the seven percent mark. Homebuyers may face increased challenges in affording their dream homes as mortgage rates continue to rise.
The 15-year fixed-rate mortgage also experienced an upward trend, averaging 6.18% compared to last week’s 5.97%. One year ago, the 15-year FRM averaged 4.32%, highlighting a substantial increase over the past year.
The S&P CoreLogic Case-Shiller Indices, a key measure of U.S. home prices revealed a sustained rebound in housing prices in March 2023, with all 20 major metro markets reporting month-over-month price increases. In April, th U.S. single-family homes sales increased by 4.1%.