Mortgage Rates Rose this Week Indicating a Surging Economy

Key Findings:

• 30-year Fixed-Rate Mortgage (FRM) Average: 6.32% (up from 6.12% last week)
• 15-year Fixed-Rate Mortgage (FRM) Average: 5.41% (up from 5.15% last week)
• Comparison to Last Year: 30-year FRM averaged 7.57% a year ago

Market Context: Freddie Mac's Primary Mortgage Market Survey (PMMS) reported a surge in mortgage rates following the release of a stronger-than-expected September jobs report. The 30-year fixed-rate mortgage saw the largest one-week increase since April.

Expert Insights:

Sam Khater, Freddie Mac’s Chief Economist:

• The rise in rates is largely due to shifts in expectations rather than underlying economic weaknesses.
• Although higher rates make affordability more challenging, they reflect the economic strength that should continue to support the housing market recovery.

Subsequently: The recent surge in mortgage rates highlights the impact of economic data on market expectations. While higher rates pose affordability challenges, they also indicate a robust economy, it shows economic strength that should continue to support the recovery of the housing market. Potential home buyers and investors should monitor these trends closely to make informed decisions in the current market environment. Seeking the advice of professional lenders and Realtors will allow you to navigate a path to successful home ownership.