Mortgage rates inched closer to the 7% mark in the latest Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC).
The 30-year fixed-rate mortgage averaged 6.89% as of May 29, up from last week when it averaged 6.86%. A year ago at this time, it averaged 7.03%.
The 15-year fixed-rate mortgage averaged 6.03%, up from last week when it averaged 6.01%. A year ago at this time, it averaged 6.36%.
“This week, the 30-year fixed-rate mortgage rose slightly higher,” said Sam Khater, Freddie Mac’s chief economist. “Aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes.”
Separately, the Mortgage Bankers Association (MBA) reports homebuyer affordability declined slightly in April, with the national median payment applied for by purchase applicants increasing to $2,186 from $2,173 in March. On a year-over-year measurement, it is down by $70 from one year ago, equal to a 3.1% decrease.
The national median mortgage payment for conventional loan applicants was $2,206, up from $2,200 in March and down from $2,271 in April 2024. The national median mortgage payment for Federal Housing Administration loan applicants was $1,895 in April, up from $1,872 in March and down from $1,955 in April 2024.
“Homebuyer affordability conditions declined somewhat in April and remain elevated overall. Economic uncertainty and high mortgage rates continue to weigh on prospective buyers’ decisions on whether to enter the housing market,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America. “Even with the increase in mortgage rates over the month, the median purchase application loan amount decreased slightly to $328,932, indicating that home prices are moderating. Slower home-price growth, and the overall trend of more inventory, are positives for housing this summer.”
