The U.S. mortgage market is experiencing a significant shift as rates approach the 7% mark, affecting the affordability and accessibility of home purchases for many Americans. Fannie Mae and Freddie Mac, two of the nation's largest mortgage financing entities, have indicated that rates are unlikely to fall below 6% in the near future, with forecasts suggesting that rates will remain above 6.5% through the current and next quarter. This comes at a time when the average 30-year fixed mortgage rate has been reported to fluctuate, reaching as high as 7.06% and then slightly decreasing to 6.96%, with spreads of 278 bps and 268 bps respectively. The increase in rates, which saw a recent climb of 13 basis points in a week, is particularly impactful during the spring home-buying season, traditionally a peak time for home purchases. The rate was recorded at 6.87% on March 21, up from 6.74% the previous week. Historical data shows a stark contrast in mortgage rates over the decades, with a rate of 13.02% in March 1985, a significant drop to 3.76% in March 2022, and a rise to approximately 6.97% in March 2024.
One thing to keep in mind with charts like thisπ The average 30-year fixed mortgage rate: March 1985: 13.02% March 2022: 3.76% March 2024: 6.97% https://t.co/0Iysnk7aU0
The average long-term U.S. mortgage rate climbed back to nearly 7%, just under where it was two weeks ago, pushing up borrowing costs for home shoppers with the spring homebuying season underway. https://t.co/VQgFgsWFz5
Back to a 6 handle The average 30-year fixed mortgage rate slips to 6.96% Spread: 268 bps https://t.co/cVjtblyuOu
Mortgage rates reverse course and inch up in the latest week. The 30-year is moving closer to 7%, which translates into higher borrowing costs for home buyers. The increase also comes amid spring home-buying season. https://t.co/8hnGVJWahp
Mortgage rates climbed 13 basis points this week https://t.co/eGyXbX5UcR https://t.co/Nm0Bi3kYzz
U.S. 30-YR FIXED RATE MORTGAGES 6.87% MARCH 21 WEEK VS 6.74% PRIOR WEEK-FREDDIE MAC
π΄ FREDDIE MAC: 30-YEAR FIXED-RATE MORTGAGE AVERAGED 6.87% AS OF MARCH 21.
U.S. 30-YR FIXED RATE MORTGAGES 6.87 PCT MARCH 21 WEEK VS 6.74 PCT PRIOR WEEK-FREDDIE MAC
The average 30-year fixed mortgage rate ticks down to 7.06% Spread: 278 bps https://t.co/kL6xtc5yLx
Yesterday, Fannie Mae told us not to expect a sub-6% mortgage rate anytime soon. Today, Freddie Mac said: "We forecast mortgage rates to stay above 6.5% through this quarter and next." In other words, low mortgage rates won't be a feature of the spring home buying season.
US mortgage rates approach 7%, dampening home purchases https://t.co/iE4iqJ3EQB https://t.co/kTDHa2VtNk