Rates Inch Up To 6.67%

Mortgage rates ticked up for a second week but remained under 7%.

Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.67%, up slightly from the week prior’s 6.65%. 

A year ago at this time, the 30-year fixed-rate mortgage averaged 6.87%.

Fifteen-year rates also ticked up to 5.83% from 5.80%. Last year, they were at 6.21%.

“The 30-year fixed-rate mortgage has stayed under 7% for nine consecutive weeks, which is helpful for potential buyers and sellers alike,” said Sam Khater, Freddie Mac’s Chief Economist.

But in a historically expensive housing market, rates under 7% are a balm, not a solution for buyers struggling under extreme unaffordability. Existing home sales increased last month, but continued improvement depends on how the economy fares moving forward.

The Federal Reserve kept its benchmark rate steady at its meeting this week, a move that Chairman Jerome Powell blamed on the volatility of President Trump’s economic policies.

Wall Street still expects the Central Bank to slash rates at some point this year. The yield on the benchmark 10-year Treasury sank earlier this week.

“We still anticipate slight easing by the central bank later this year, which may help mortgage rates to come down,” Realtor.com Senior Economist Joel Berner wrote in a note.

Housing inventory, which has been on the rise recently, is likely to be affected as builders contend with higher costs to build homes.

“Even those builders who are supportive of tariffs—and there are some who think tariffs are part of a comprehensive plan that would reduce government spending and the deficit, which would mean lower interest rates—would like to know the rules of the road,” Robert Dietz, chief economist at the National Association of Home Builders, told Barron’s.