Home buyers in the United States face a new jump in mortgages. This week Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 6.79%.
“Mortgage rates rose this week as a buoyant economy has led the market to price in the likelihood of another Federal Reserve rate hike,” said Sam Khater, chief economist at Freddie Mac.
“Although there has been a steady stream of buying demand around rates in the low to mid 6% range, that demand is likely to weaken as rates approach 7%.”
For Zillow, the expectation is that by the end of 2023, prices will moderate and fees will stabilize below their maximum of 7%, a combination that will result in better affordability for homebuyers.
This is how the rates were:
30-year mortgage:
The 30-year fixed-rate mortgage averaged 6.79% as of June 1, 2023, up from last week when it averaged 6.57%. A year ago at this time, the 30-year FRM averaged 5.09%.
15-year mortgage:
The 15-year fixed-rate mortgage averaged 6.18%, up from last week when it averaged 5.97%. A year ago at this time, the 15-year FRM averaged 4.32%.
PMMS focuses on fully amortizing, conforming, conventional home purchase loans for borrowers with a 20 percent down payment and excellent credit.
Keep reading:
· Will mortgages become affordable in the US again? zillow answers
· Discover the cheap cities in the US to live: WalletHub ranking
· Know which are the best and worst cities to live in the US with the best recreation options