Home Buying Average 30-year mortgage rate surges, adding pressure on buyers Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their loans, also increased this week. A year ago, the 30-year fixed mortgage rate averaged 7.57 percent. Five years ago, it averaged 3.57 percent, according to the Federal Reserve Bank of St. Louis. Jon Gorey
The average rate on a 30-year mortgage in the United States surged to 6.32 percent this week, adding pressure on home buyers facing sky-high prices and a limited supply of houses for sale.
The rate ticked up from 6.12 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.57 percent. Five years ago, it averaged 3.57 percent, according to the Federal Reserve Bank of St. Louis.
Two weeks ago, the average rate slipped to its lowest level in two years — 6.08 percent — boosting home shoppers’ purchasing power as they navigate a housing market with prices near all-time highs.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield on the 10-year Treasury was 4.10 percent Thursday, up from 3.62 percent in mid-September, just days before the Fed slashed its benchmark lending rate by a half a point.
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Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, increased again this week. The average rate rose to 5.41 percent from 5.25 percent last week. A year ago, it averaged 6.89 percent, Freddie Mac said. Five years ago, it was 3.05 percent, according to the St. Louis Fed.
Average 30-year mortgage rate surges, adding pressure on buyers
