Mortgage rates, a term which refers to the interest rates on home loans, have seen a consistent increase over the past five weeks. This data has been confirmed by Freddie Mac, a primary mortgage provider.
As of May 2, 2024, the average rate for a 30-year fixed-rate mortgage (FRM) has risen to 7.22 percent, a slight increase from the previous week's average of 7.17 percent. A year prior, the average rate for the same type of mortgage was considerably lower at 6.39 percent.
Similarly, the average rate for a 15-year FRM has also risen, averaging at 6.47 percent, up from last week's 6.44 percent. The rate for a 15-year FRM averaged at 5.76 percent the previous year.
As we progress into the peak period of the Spring Homebuying Season, mortgage rates have shown an upward trend for five weeks in a row, says Sam Khater, the Chief Economist at Freddie Mac. He explains that traditionally, over a third of all home sales for the entire year occur between March and June. With two more months to go in this critical window, prospective homebuyers could continue to see rising interest rates in the near future. However, Khater notes, many buyers are adjusting to these heightened rates, as evidenced by the recent spike in pending home sales which are now at their highest level for the year.
