The average for a 30-year fixed loan is teetering close to a major barrier
Mortgage rates saw an increase for the third consecutive week.
According to Freddie Mac, the average for a 30-year fixed loan has increased from the previous week’s 6.77% to 6.9%. This has further squeezed potential buyers as the market continues to become less affordable following the continued rise of borrowing costs and prices. They were also left with fewer options for homes as the lack of supply on the market continues to give buyers a tough time.
While the Federal Reserve said that the benchmark interest rate was likely to have already peaked, many investors are still cautious about when rate cuts will begin. From the most recent meeting of the central bank, most of the policymakers seemed to be more concerned over the possible risks of cutting rates instead of what will happen if they remain higher for a longer period of time.
“Housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability,” said Sam Khater, Freddie Mac’s chief economist, in a statement.
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