Mortgage rates increased for the third straight week and continue to hover near the 7% level, mortgage buyer Freddie Mac said Thursday.
Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage rose to 6.89% from last week’s reading of 6.86%. It marked the highest level since Feb. 6, when the rate on a 30-year mortgage also averaged 6.89%.
The average rate on a 30-year loan was 7.03% a year ago.
“Aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes,” said Sam Khater, Freddie Mac’s chief economist.
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The average rate on the 15-year fixed mortgage climbed to 6.03% from last week’s reading of 6.01%. One year ago, the rate on the 15-year fixed note averaged 6.36%.
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Meanwhile, the National Association of Realtors on Thursday said that its Pending Home Sales Index, based on signed contracts, dropped by 6.3% to 71.3 last month.
Economists polled by Reuters had forecast contracts, which become sales after a month or two, falling 1%. Pending home sales declined by 2.5% from a year earlier.
“At this critical stage of the housing market, it is all about mortgage rates,” said NAR chief economist Lawrence Yun. “Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market.”
Reuters contributed to this report.
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