Mortgage Rates Climb for 6th Consecutive Week

The average rate for a 30-year mortgage in the US has climbed for the sixth consecutive week, hitting 6.79%, its highest point since early July but down from last year's 7.5%. Freddie Mac reported the rate stood at 6.72% last week. Similarly, the 15-year fixed-rate mortgage rates inched upwards to 6% from 5.99%, though still below last year's 6.81%.

This rise in mortgage rates makes homebuying more costly, limiting prospective buyers' purchasing power amid record-high home prices. Mortgage rates are largely influenced by the 10-year Treasury bond yields, which increased due to positive economic data and speculation over potential changes under President-elect Trump's administration. Chief Economist Ralph McLaughlin predicts mortgage rates to stabilize by year-end but at higher levels than anticipated.

The hike in mortgage rates has led to a decline in mortgage applications, which fell by 10.8% last week, as per the Mortgage Bankers Association. Refinancing applications also dropped by 19%, although they remain significantly higher than the same week last year, when rates were steeper. MBA CEO Bob Broeksmit noted, "Rates and borrower demand will likely remain volatile in the coming weeks as financial markets digest both the election results and the Fed's upcoming monetary policy decisions." (This story was generated by Newser's AI chatbot. Source: the AP)