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Mortgage interest rates rose for a second week in a row.
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.85 percent.
“Mortgage rates increased for the second straight week, rebounding after a decline from earlier this month,” said Sam Khater, Freddie Mac’s Chief Economist. “While a slight improvement in new and existing home sales is encouraging, the market remains plagued by an overwhelming undersupply of homes. A strong economy can help build momentum heading into the new year and potentially boost purchase activity.”
- The 30-year FRM averaged 6.85 percent as of December 26, 2024, up from last week when it averaged 6.72 percent. A year ago at this time, the 30-year FRM averaged 6.61 percent.
- The 15-year FRM averaged 6.0 percent, up from last week when it averaged 5.92 percent. A year ago at this time, the 15-year FRM averaged 5.93 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.
Here’s reaction from National Association of Realtors Deputy Chief Economist Jessica Lautz.
The average 30-year fixed mortgage rate from Freddie Mac rose to 6.85% from 6.72% last week. At 6.85%, with 20% down, a monthly mortgage payment is $2,097 on a home with a price of $400,000. With 10% down, the typical payment would be $2,359.
Positive: Home buyer activity has increased despite higher rates for the last two weeks. Increases in housing inventory will continue to help buyers and could provide more affordable home-buying opportunities. First-time buyers are taking advantage of more favorable conditions and are at 30% of the market in the last month.
Negative: The Fed has moderated its tone regarding rate cuts in 2025. More cuts are expected, but how many is the question into the new year. Buyers are resigned to the fact that mortgage rates are, and are expected to be, in the 6% range for the foreseeable future.
