Mortgage rates experience modest increase, reaching 6.71%

In the latest report from Freddie Mac, it was revealed that mortgage rates have risen slightly, with the 30-year fixed-rate mortgage (FRM) averaging 6.71% as of June 29, 2023. This marks a modest increase from the previous week when it averaged 6.67%. A year ago, during the same period, the 30-year FRM averaged 5.70%.

The 15-year fixed-rate mortgage also experienced a slight uptick, averaging 6.06%, up from last week’s average of 6.03%. Comparatively, a year ago, the 15-year FRM stood at 4.83 percent.

Freddie Mac’s Chief Economist, Sam Khater, acknowledged the consistent range of mortgage rates in the six to seven percent range over the past six months. Despite affordability challenges, homebuyers have adapted to these conditions, propelling new home sales to their highest level in over a year. Khater also noted that new home sales have outperformed the resale market, thanks to a slightly larger supply of newly constructed homes. The increased demand has contributed to a steady rise in housing prices, which have experienced consecutive monthly increases.