Mortgage rates, which are the interest rates applied to home loans, have increased for the fourth consecutive week, as reported by Freddie Mac (FMCC.OB).
As of January 9, 2025, the average rate for a 30-year fixed-rate mortgage (FRM) is 6.93 percent, slightly up from the previous week's average of 6.91 percent. One year ago, the 30-year FRM stood at 6.66 percent.
Similarly, the 15-year FRM has risen to an average of 6.14 percent, compared to 6.13 percent the week prior. This is an increase from the 5.87 percent average recorded at the same time last year.
"During the first complete week of the new year, the 30-year fixed-rate mortgage remained notably high, just under the 7 percent mark," stated Sam Khater, Freddie Mac’s Chief Economist. "The persistent strength of the economy has exerted upward pressure on mortgage rates. Coupled with elevated home prices, this trend continues to challenge housing affordability. The scarcity of entry-level housing continues to be a significant hurdle, especially for individuals aspiring to become first-time homeowners."
