The 30-year fixed-rate mortgage continued its climb to the 8% level, averaging 7.63% as of Oct. 19, according to new data from Freddie Mac’s (OTCQB:FMCC) Primary Mortgage Market Survey.
Last week, the 30-year fixed-rate mortgage averaged 7.57%. One year ago at this time, it averaged 6.94%.
“Mortgage rates continued to approach 8% this week, further impacting affordability,” said Sam Khater, Freddie Mac’s chief economist. “In this environment, it’s important that borrowers shop around with multiple lenders for the best mortgage rate. With research showing down payment is the single largest barrier to first-time homebuyers attaining homeownership, borrowers should also ask their lender about down payment assistance. Launched this week, Freddie Mac’s DPA One tool helps lenders and homebuyers identify and take advantage of down payment assistance programs nationwide.”
Khater added, “Not only are homebuyers feeling the impact of rising rates, but home builders are as well. Incoming data shows that the construction of new homes rebounded in September but as rates keep rising, home builders appear to be losing confidence. As a result, we expect construction to trend down in the short-term.”
Freddie Mac also reported the 15-year fixed-rate mortgage averaged 6.92%, up from last week’s 6.89% average and up from the 6.23% average set one year ago at this time.