Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
Mortgage Rates Hover Near 7% | Freddie Mac
By Leslie Cook MONEY RESEARCH COLLECTIVE
According to Freddie Mac’s benchmark survey, the average rate on a 30-year fixed-rate mortgage has ticked up to 6.96%.
Mortgage rates climbed for the third consecutive week on Thursday, reaching their highest level since November 2022.
The 30-year fixed-rate mortgage averaged 6.96% — an increase of 0.06 percentage points — as of August 10, according to Freddie Mac’s benchmark survey. The average rate on a 15-year fixed-rate loan was also higher, changing by 0.09 percentage points to settle at 6.34%.
Mixed economic data keeps rates high
The current state of the U.S. economy is largely driven by two seemingly contradictory forces: lackluster job growth and reduced unemployment.
Recent jobs reports highlight this dichotomy: The economy added 187,000 new jobs in July, according to Bureau of Labor Statistics data, well below the average established in the first half of the year (wage growth also slowed.) Unemployment, on the other hand, dipped to 3.5%.
Upcoming market data will determine whether mortgage rates keep rising or finally begin their much-anticipated slide. The July Consumer Price Index, released earlier today, showed inflation increased to 3.2% year-over-year (by comparison, the June CPI reported inflation at 3% YOY). The Producer Price Index, which is set to come out on Friday, is another data set analysts will be eyeing.
“If the data provides no clear sign of a cooling economy, it could support the [Federal Reserve’s] concern that the inflation battle is not over,” said Realtor.com economist Jiayi Xu, in a prepared statement.
Translation? More rate hikes could be on the horizon.
More from Money:
Leslie Cook is the Lead Mortgage Reporter covering mortgages and the housing market for Money. She has been a guest on the This Morning with Gordon Deal radio show and served as moderator for ServiceLink's State of Homebuying webinar. Her career started as a business reporter over 30 years ago, covering the computer and human resources beats for Caribbean Business newspaper in San Juan, Puerto Rico. She graduated Cum Laude from Bryn Mawr College in Pennsylvania with a bacheloru2019s degree in history.