Mortgage rates were soaring again in the latest Primary Mortgage Market Survey from Freddie Mac (OTCQB: FMCC).
The 30-year fixed-rate mortgage averaged 6.57% as of May 25, up from last week when it averaged 6.39%. A year ago at this time, the rate averaged 5.10%.
The 15-year fixed-rate mortgage averaged 5.97%, up from last week when it averaged 5.75%. A year ago at this time, the rate averaged 4.31%.
“The U.S. economy is showing continued resilience which, combined with debt ceiling concerns, led to higher mortgage rates this week,” said Sam Khater, Freddie Mac’s chief economist. “Dampened affordability remains an issue for interested homebuyers and homeowners seem unwilling to lose their low rate and put their home on the market. If this predicament continues to limit supply, it could open up an opportunity for builders to help address the country’s housing shortage.”
Separately, the national median mortgage payment during April was $2,112, according to new data from the Mortgage Bankers Association (MBA). This represents a 0.9% uptick from $2,093 in March and an 11.8% spike from $1,889 in April 2022.
The national median mortgage payment for conventional loan applicants was $2,170, up from $2,145 in March and from $1,967 in April 2022. The national median mortgage payment for FHA loan applicants was $1,750 in April, down from $1,755 in March and up from $1,374 in April 2022.
“Homebuyer affordability eroded further in April, with both the typical borrower monthly payment and median purchase amount rising due to higher rates and home prices,” said Edward Seiler, MBA’s associate vice president for housing economics and executive director of the Research Institute for Housing America. “Elevated interest rates and low housing supply have kept many prospective borrowers on the sidelines. However, MBA expects mortgage rates to stabilize and inventory levels to improve, which should incentivize some buyers to reenter the market.”