US long-term mortgage rates up for 6th week; 30-year at 6.7% - Albuquerque Journal

US long-term mortgage rates up for 6th week; 30-year at 6.7%

WASHINGTON — Average long-term U.S. mortgage rates rose this week for the sixth straight week, marking new highs not seen in 15 years, before a crash in the housing market triggered the Great Recession.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.70% from 6.29% last week. By contrast, the rate stood at 3.01% a year ago.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, jumped to 5.96% from 5.44% last week.

Rapidly rising mortgage rates threaten to sideline even more homebuyers after more than doubling in 2022. Last year, prospective homebuyers were looking at rates well below 3%.

Freddie Mac noted that for a typical mortgage amount, a borrower who locked in at the higher end of the range of weekly rates over the past year would pay several hundred dollars more than a borrower who locked in at the lower end of the range.

Last week, the Federal Reserve bumped its benchmark borrowing rate by another three-quarters of a point in an effort to constrain the economy, its fifth increase this year and third consecutive 0.75 percentage point increase.

Perhaps nowhere else is the effect of the Fed’s action more apparent than the housing sector. Existing home sales have been in decline for seven straight months as the rising cost to borrow money puts homes out of reach for more people.

The government reported Thursday that the U.S. economy, battered by surging consumer prices and rising interest rates, shrank at a 0.6% annual rate from April through June. That was unchanged from the previous estimate for the second quarter.

Fed officials forecast that they will further raise their benchmark rate to roughly 4.4% by year’s end, a full point higher than they envisioned as recently as June. And they expect to raise the rate again next year, to about 4.6%. That would be the highest level since 2007.

By raising borrowing rates, the Fed makes it costlier to take out a mortgage and an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.

Mortgage rates don’t necessarily mirror the Fed’s rate increases, but tend to track the yield on the 10-year Treasury note. That’s influenced by a variety of factors, including investors’ expectations for future inflation and global demand for U.S. Treasurys.

Home » News » Nation » US long-term mortgage rates up for 6th week; 30-year at 6.7%


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
A DEADLY YEAR
ABQnews Seeker
Montaño shooting marks record 115th homicide ... Montaño shooting marks record 115th homicide in city
2
PNM struggles with rising fuel cost issues
ABQnews Seeker
But customer fuel prices are expected ... But customer fuel prices are expected to decrease significantly in January
3
Pearce wins reelection as NM GOP chairman through 2024
2022 election
Fends off 4 challengers with 55% ... Fends off 4 challengers with 55% of votes cast
4
Talking Grammer, Ep. 55: UNM Lobo coach Richard Pitino
ABQnews Seeker
In episode 55 of the podcast, ... In episode 55 of the podcast, we catch up with UNM Lobo basketball coach Richard Pitino on what has been a unique first month ...
5
Spelling bee competitors master craft one word at a ...
ABQnews Seeker
Favorite books help bee competitors get ... Favorite books help bee competitors get ready
6
Fire ravaged NM forests this year. Now Christmas tree ...
ABQnews Seeker
Tree harvesters are grappling with the ... Tree harvesters are grappling with the aftermath of the Calf Canyon/Hermits Peak fire.
7
The PED is asking for feedback on its new ...
ABQnews Seeker
Proposed are several rule changes to ... Proposed are several rule changes to implement the system, known as micro-credentials
8
Rain can't stop the twinkling lights
ABQnews Seeker
ABQ's annual Twinkle Light Parade puts ... ABQ's annual Twinkle Light Parade puts a shine on Central Avenue, Nob Hill
9
Santa Fe Opera wins international recognition as 'Festival of ...
ABQnews Seeker
The International Opera Awards named the ... The International Opera Awards named the artistic nucleus just north of Santa Fe 'Festival of the Year' at a ceremony in Madrid, Spain.
10
Named for San Ignacio, church has called Santa Barbara-Martineztown ...
Arts
Just west of Interstate 25, San ... Just west of Interstate 25, San Ignacio Catholic Church sits within the Santa Barbara-Martineztown neighborhood minutes away from Albuquerque High School.