Mortgage rates continue to rise in the United States

By Colette Lauture

The United States’ 30-year mortgage rate average rose for the fifth consecutive week. Sitting at 6.72%, the average hasn’t been this high since August 1, according to mortgage buyer company Freddie Mac. 

Mortgage rates increasing can result in hundreds of dollars a month added onto borrowing costs. This lessens the purchasing power of home buyers, coming at a time where housing prices are staying at an all-time high. They are also influenced by a host of factors, principally the economy. 

Borrowing costs on 15-year fixed rate mortgages, which homeowners may use to refinance their home loan to a reduced rate, increased this week as well. The number is now at 5.99%, from last week’s 5.71%, Freddie Mac said.

Despite its rise, Freddie Mac reported the average on a 30-year mortgage rate is still down from last year’s 7.76%. Its peak so far this year was in May, when the average reached 7.22%. In late September, it reached its lowest level in two years at 6.08%.

Sam Khater, chief economist at Freddie Mac, says mortgage rates will continue to be volatile, citing several “potential inflection points” happening over the next week: the jobs report, this year’s election, and the Federal Reserve interest rate decision.

Other economists predict that although mortgage rates will remain unsteady this year, they will begin to ease in 2025. This should increase the affordability of home shoppers, but may also boost home prices if the housing market has more buyers.