Freddie Mac's 30-year fixed-rate mortgage (FRM) rate has risen for the fifth consecutive week, reaching 7.57% during the week ending Thursday, October 12, 2023, according to the company's economist, Sam Khater. This represents an increase from last week's rate of 7.49%.
This trend continues amidst ongoing geopolitical and market uncertainties. Despite robust economic and income growth, affordability issues persist within the housing market, pushing purchase demand to a three-decade low. A year ago, the average rate for a similar mortgage stood lower at 6.92%.
In addition to the 30-year FRM, the average for the 15-year FRM also increased to 6.89% as of Thursday last week, up from the previous week's rate of 6.78%. This is also higher than last year's rate of 6.09%.
Interestingly, despite these rising rates, there was a slight uptick in mortgage application volume by 0.6% during the week ending Sunday last week, as reported by the Mortgage Bankers Association.
Freddie Mac's mission emphasizes liquidity, stability, affordability, and equity throughout all economic cycles. The company particularly focuses on borrowers capable of making a 20% down payment and maintaining excellent credit.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.