US 30-Year-Mortgage Rates Edge Up Again to 6.24%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The average 30-year mortgage rate in the U.S. rose to 6.24%, according to Freddie Mac. This marks the second straight weekly increase, though rates remain near yearly lows. Refinancing activity remains strong as buyers respond to recent rate trends.
Mortgage Rate Snapshot (Bullet Points):
- 30-year fixed mortgage: 6.24%, up from 6.22% last week
- 15-year fixed mortgage: 5.49%, slightly down from 5.5%
- Rates remain below last year’s levels (6.78% for 30-year)
- 10-year Treasury yield: 4.10%, a key benchmark for rates
- Mortgage applications up 6% week-over-week
- Refinancing accounts for 56% of current applications
- Home sales still sluggish, but improving from yearly lows
- Housing market remains pressured by rates above 6%
US 30-Year-Mortgage Rates Edge Up Again to 6.24%
Deep Look
The average U.S. long-term mortgage rate rose slightly this week, ticking up to 6.24% for a 30-year fixed loan, according to Freddie Mac’s weekly report released Thursday. That’s up from 6.22% the week before but still close to the lowest level in over a year, when it briefly hit 6.17%.
While the increase is modest, it marks the second consecutive weekly gain, reflecting fluctuations in the bond market and broader economic expectations. Mortgage rates are closely tied to the 10-year Treasury yield, which edged up to 4.10% this week.
Meanwhile, 15-year fixed-rate mortgages, often favored by homeowners looking to refinance, dipped slightly. The average rate now stands at 5.49%, down from 5.5% last week and significantly below the 5.99% level from a year ago.
“Rates have stabilized in recent weeks, but the market is still very sensitive to economic data and Fed policy signals,” said a Freddie Mac spokesperson.
What’s Driving Mortgage Rates Right Now
Mortgage rates are shaped by several key economic forces, including:
- Federal Reserve interest rate decisions
- Inflation expectations
- Demand for mortgage-backed securities
- Investor behavior in the bond market
Though the Federal Reserve hasn’t raised interest rates in recent meetings, uncertainty remains about whether further hikes are needed to keep inflation under control. That’s keeping the housing market in limbo, as homebuyers and lenders wait for clearer signals.
Housing Market Outlook
The sustained period of 30-year mortgage rates above 6%, which began in September 2022, has significantly dampened activity in the housing sector. Sales of existing homes in 2024 dropped to their lowest level in nearly 30 years, according to the National Association of Realtors.
However, the slight decline in rates in recent weeks has sparked renewed interest from buyers. According to the Mortgage Bankers Association (MBA), applications for home loans rose nearly 6% last week — the strongest pace since September.
“The dip in rates this fall has provided a window of opportunity for some buyers to re-enter the market,” said an MBA analyst.
Refinancing also remains a key trend. Roughly 56% of mortgage applications last week were for refinance loans, reflecting homeowners’ eagerness to lock in better terms on existing mortgages. While that’s down slightly from the previous week, it’s still well above early-year averages.
Expert Insight
Economists say that unless mortgage rates dip below 6%, the housing market will likely remain in a subdued state. Still, modest rate drops could bring back momentum heading into the winter and early spring.
“The key will be stability,” said a Wells Fargo housing strategist. “Even a small range-bound rate environment is better than unpredictable swings for most homebuyers.”
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