Mortgage Rates Increase, Nearing Seven Percent

By klrw460 March 21, 2024

Freddie Mac announced through its Primary Mortgage Market Survey® (PMMS®) that the average rate for a 30-year fixed-rate mortgage (FRM) has risen to 6.87 percent. This increase follows a brief period of declining rates, as noted by Sam Khater, Freddie Mac’s Chief Economist. Khater explains that this rise occurs just as the spring homebuying season begins, with a slight increase in existing home inventory and a pickup in new home construction. Despite higher mortgage rates, homebuilders are showing renewed confidence in the housing market, driven by pent-up demand, an ongoing supply shortage, and the anticipation of potential Federal Reserve rate cuts later in the year.

Further data from the PMMS® reveals that the 15-year FRM rate has also increased to 6.21 percent, up from 6.16 percent the previous week, compared to 5.68 percent a year ago. The survey primarily focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.

Freddie Mac’s mission, as stated, is to enhance housing market liquidity, stability, affordability, and equity across various economic cycles, aiding millions of families in buying, renting, or maintaining their homes since 1970.

For the full details and insights, please refer to the original press release at the following link: