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  • Mortgage rates fall to lowest level in six weeks

    Mortgage rates fall to lowest level in six weeks

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    The numbers: Mortgage rates slide down to the lowest level in six weeks as consumers feel uncertain about the state of the U.S. economy.

    The 30-year fixed-rate mortgage averaged 6.32% as of March 30, according to data released by Freddie Mac on Thursday. 

    That’s down 10 basis points from the previous week — one basis point is equal to one hundredth of a percentage point. 

    The 30-year was last at this level in mid-February.

    Last week, the 30-year was at 6.42%. Last year, the 30-year was averaging at 4.67%.

    The average rate on the 15-year mortgage fell to 5.56%, from 5.68% the previous week. The 15-year was at 3.83% a year ago.

    Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. 

    Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.61% as of Thursday morning.

    What Freddie Mac said: “Over the last several weeks, declining rates have brought borrowers back to the market but, as the spring homebuying season gets underway, low inventory remains a key challenge for prospective buyers,” Sam Khater, chief economist at Freddie Mac, said in a statement. 

    Market reaction: The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.551%
    was trading below 3.6% during the afternoon trading session on Thursday.

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  • Mortgage rates march towards 7%, reaching highest level since 2007

    Mortgage rates march towards 7%, reaching highest level since 2007

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    The numbers: Mortgage rates continue to march towards 7%, continuing to pressure potential homeowners looking to buy a home. 

    The 30-year fixed-rate mortgage averaged 6.7% as of Sept. 29, according to data released by Freddie Mac
    FMCC,
    +0.75%
    on Thursday. 

    Mortgage rates are up as the Federal Reserve pushed key interest rates up to deal with the worst inflation the country has seen in 40 years. 

    That’s up 41 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%. 

    The rise in rates is bad news for prospective buyers, as it potentially adds hundreds of dollars to their mortgage payments.

    Mortgage rates are now at highs last seen since mid-2007. To put the latest rate in perspective: A year ago, the 30-year was at 3.01%.

    “Mortgage rates are now at highs last seen since mid-2007. To put the latest rate in perspective: A year ago, the 30-year was at 3.01%.”

    Bloomberg’s chief economist Michael McDonough said a $2,500 monthly mortgage payment — with 20% down — would have gotten a buyer a $758,000 home last year.

    This year? You’d get a lot less house — with $2,500 per month, you’d only be able to afford a $476,000 home, he wrote on Twitter
    TWTR,
    -1.12%    .

    The median price of an existing home in the U.S. was $389,500 in August, down from $403,800 the previous month, the National Association of Realtors said.

    The average rate on the 15-year mortgage also rose over the past week to 5.96%. The adjustable-rate mortgage averaged 5.3%, up from the prior week.

    “The uncertainty and volatility in financial markets is heavily impacting mortgage rates,” Sam Khater, chief economist at Freddie Mac, said in a statement.

    Khater added that Freddie Mac’s survey of lenders revealed a large dispersion in rates, so home buyers should shop around with lenders to find a good quote.

    Mortgage applications also fell in the latest week, as cautious buyers continue to pull back as rates march towards 7%. 

    The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.784%
    rose slightly above 3.8% in morning trading on Thursday.

    Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com

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