Freddie Mac reported on Thursday that the average US 30-year fixed mortgage rate increased to 6.55% this week.
That was higher than the 6.49% average recorded during the previous week.
15-Year Mortgage Rate Also Moves Higher
The average rate on a 15-year fixed mortgage rose to 5.93%, compared with 5.82% one week earlier.
During the same period last year, the average 15-year mortgage rate stood at 5.92%.
Mortgage Rates Remain Below Last Year’s Level
Despite the weekly increase, the average 30-year mortgage rate remains lower than it was one year ago.
Freddie Mac reported that the 30-year rate averaged 6.75% during the corresponding week last year.
This comparison suggests that borrowing conditions have improved slightly on an annual basis, even though mortgage costs remain elevated.
Home Purchase Demand Weakens
Freddie Mac Chief Economist Sam Khater said demand for home purchase applications has recently softened.
Higher mortgage payments continue to place pressure on buyers, particularly those entering the housing market for the first time.
Housing Conditions Show Modest Improvement
Khater also noted that broader conditions for prospective homebuyers are gradually improving.
Housing affordability has become somewhat more favorable, while the number of homes available for sale continues to increase.
A larger supply of properties could provide buyers with more options and potentially reduce some of the competitive pressure seen in recent years.
However, elevated mortgage rates are likely to remain an important challenge for the US housing market.
