U.S. mortgage rates rose for the third week in a row, on the back of expectations that the Federal Reserve will hold interest rates steady until the spring<\/a>.<\/p>\n The 30-year fixed-rate mortgage rose and averaged 6.9% as of February 22, according to data<\/a> released by Freddie Mac It\u2019s up 13 basis points from the previous week \u2014 one basis point is equal to one hundredth of a percentage point.\u00a0<\/p>\n Mortgage rates were last at this level in mid-Dece<\/a>m<\/a>ber,<\/a> and that was when rates fell for the first time below 7% since August 2023.<\/p>\n A year ago, the 30-year was averaging at 6.5%.<\/p>\n The average rate on the 15-year mortgage was 6.29%, up from 6.12% last week. The 15-year was at 5.76% a year ago.<\/p>\n Freddie Mac\u2019s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.\u00a0<\/p>\n Separate data by Mortgage News D<\/a>a<\/a>ily<\/a> said that the 30-year fixed-rate mortgage was averaging at 7.14% as of Thursday afternoon. The Mortgage Bankers Association\u2019s survey noted that the 30-year was at 7.06% as of February 16.<\/p>\n What Freddie Mac said: \u201c<\/strong>Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market,\u201d Sam Khater, chief economist at Freddie Mac, said in a statement.<\/p>\n But \u201cthe current cycle is different [from] historical norms,\u201d he added, \u201cas housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.\u201d<\/p>\n What are they saying?<\/strong> \u201cBuyer demand remains strong, but these higher mortgage rates are going to make it harder, particularly for first-time homebuyers who do not have equity to roll into the purchase of a home,\u201d Lisa Sturtevant, chief economist at Bright MLS, said in a statement.\u00a0<\/p>\n \u201cThe higher rates we\u2019re seeing now [are likely] going to lead more prospective buyers to sit out the market and wait for rates to come down,\u201d she added. \u201cIn some markets, particularly in high-cost, coastal markets, we may be hitting an affordability ceiling which will lead to a softening in prices.<\/p>\n<\/p><\/div>\n<\/div>\n
\n FMCC,
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\n on Thursday.\u00a0<\/p>\n
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