The real estate market in the United States becomes increasingly unaffordable. Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year Fixed Rate Mortgage (FRM) averaged 7.09% this week.
“The economy continues to perform better than expected and the 10-year Treasury yield has risen, what has caused mortgage rates to risesaid Sam Khater, chief economist at Freddie Mac.
“The last time the 30-year fixed-rate mortgage exceeded 7% was last November. Demand has been hit by affordability headwinds, but low inventory remains the root cause of stagnant home sales,” Khater added.
With these data, the information from the Fannie Mae Home Buying Sentiment Index (HPSI) for July stands out, which reported greater pessimism towards home buying conditions, with 82% of consumers reporting that it is a “bad time to buy” a homea new poll high and an increase of 78% in June.
This is how the rates were:
30 year mortgage
The 30-year fixed-rate mortgage averaged 7.09% as of August 17, 2023, compared to last week when it averaged 6.96%. A year ago at this time, the 30-year FRM averaged 5.13%.
15 year mortgage
The 15-year fixed-rate mortgage averaged 6.46%, more than last week when it averaged 6.34%. A year ago at this time, the 15-year FRM averaged 4.55%.
PMMS focuses on fully amortizing, conforming, conventional home purchase loans for borrowers with a 20% down payment and excellent credit.
Keep reading:
· Real Estate Market Myths Affecting Buyers and Sellers in the US Today.
· Housing: mortgage rates in the US rise for the third consecutive week and are close to 7%
· Places homebuyers are moving to in the US.
