A mortgage market survey conducted by Freddie Mac finds a 30-year fixed rate mortgage (FRM) averages almost 7% today.
A 30-year FRM averaged 6.90% for February 22, 2024, compared to 6.50% around this time last year. For a 15-year FRM, the average today is 6.29% compared to last year’s 5.76%.
Freddie Mac’s Chief Economist Sam Khater said, "Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates.” He continues, “Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”
See the survey results here.