Mortgage Rates Jump Up
(RTTNews) - Mortgage rates, or interest rates on home loans, rose this week in expectation of another Federal Reserve rate hike, according to mortgage provider Freddie Mac (FMCC.OB).
Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage averaged 6.79 percent as of June 1, 2023, up from last week when it averaged 6.57 percent. A year ago at this time, the 30-year FRM averaged 5.09 percent.
The 15-year fixed-rate mortgage averaged 6.18 percent, up from last week when it averaged 5.97. A year ago at this time, the 15-year FRM averaged 4.32 percent.
"Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike," said Sam Khater, Freddie Mac's Chief Economist. "Although there has been a steady flow of purchase demand around rates in the low to mid six percent range, that demand is likely to weaken as rates approach seven percent."
