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Mortgage rates resume climb toward 7%
Mortgage rates ticked up last week, providing little relief to prospective homebuyers in a seasonally slower time for the housing market.
The average 30-year fixed mortgage rate was 6.84% in the week through Wednesday, according to Freddie Mac data, compared with 6.78% a week earlier. The average 15-year rate rose to 6.02%, from 5.99% a week earlier.
Rates have been marching back toward 7% as 10-year Treasury yields, which closely track mortgage rates, have remained around 4.4% in the weeks since the election.
“Heading into the holidays, purchase demand remains in the doldrums,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “While for-sale inventory is increasing modestly, the elevated interest rate environment has caused new construction to soften.”
Read more: Mortgage and refinance rates today, November 21, 2024: Rates are staying high
Even as higher rates persist, mortgage application volumes are improving slightly. Applications to purchase a home were up 2% through Nov. 15 compared to the same week a year ago, according to the Mortgage Bankers Association (MBA).
Refinancing applications also rose 2%, driven by an uptick in VA loans, according to the MBA.
Existing home sales data released on Thursday showed the first year-over-year gain since 2021, likely helped by lower mortgage rates seen earlier in the fall. October’s seasonally adjusted annual rate of 3.96 million homes was up 2.9% from a year earlier.
The direction of mortgage rates will be a key factor affecting home sales in the months ahead.
Read more: Mortgage rates are still increasing — is this a good time to buy a house?
“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” National Association of Realtors chief economist Lawrence Yun said in a statement. “Additional job gains and continued economic growth appear assured, resulting in growing housing demand.”
Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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