Mortgage Rates Move Toward Seven Percent as Markets Digest Incoming Data

By klrw460 April 11, 2024

“According to Freddie Mac’s Chief Economist, Sam Khater, mortgage rates have been on the rise throughout the year due to persistent inflation and adjustments in the Federal Reserve’s approach to monetary policy. Despite the inflation data for March showing minimal changes, the response from the financial markets tells a different story. Inflation rates have steadied, slowing down from 9% to 3% between June 2022 and June 2023, and have since fluctuated slightly between 3.1% and 3.7%, averaging at 3.3%. The March data showed a consistent annual inflation rate of 3.5%, yet the market reacted strongly, as evidenced by a significant fall in the Dow Jones Industrial Average following the announcement.”

Khater added, “The inflation trends have been relatively stable for almost a year, but the overall economic narrative remains complex and mirrors the unexpected expectations of a recession seen last year.”

As for recent figures:

  • The average rate for a 30-year fixed-rate mortgage (FRM) was 6.88% as of April 11, 2024, up from 6.82% the previous week and 6.27% the same time last year.
  • The 15-year FRM averaged 6.16%, an increase from last week’s 6.06% and 5.54% a year ago.

For more information, read the original press release from: