Mortgage Rates Rise After Consecutive Drops
After a month of declines, mortgage rates increased this week, mirroring movements in the 10-year Treasury yield. The 30-year fixed-rate mortgage went up by five basis points to 6.22%, reversing last week's slight fall to 6.17%, according to Freddie Mac's Primary Mortgage Market Survey.
Current Rate Comparisons
- The 30-year fixed-rate mortgage stands at 6.22%, compared to 6.79% a year ago.
- The 15-year fixed-rate mortgage rose nine basis points to 5.50% from last week’s 5.41%, down from 6% the previous year.
"On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving," said Sam Khater, Freddie Mac's chief economist.
Impact of Federal Reserve Actions
The Federal Reserve's recent 25 basis point cut in its benchmark rate has had minimal influence on mortgage rates, which have actually climbed by three basis points since. This limited effect may be attributed to Fed Chair Jerome Powell's recent remarks that dampened hopes for another rate cut in December.
Following Powell's comments, the 10-year Treasury yield increased from 3.98% on the morning of the Federal Open Market Committee meeting to 4.08% by noon Thursday.
Outlook on Mortgage Rates
Zillow noted last week that the 30-year mortgage rate is expected to remain within a 6% to 7% range for the foreseeable future.
Summary: Despite a short-term drop, mortgage rates have bounced back slightly, reflecting cautious economic signals and Fed policy uncertainty, with affordability gradually improving for homebuyers.