The 30-year fixed rate mortgage rose to 6.54%, up from 6.44% over the week prior, according to Freddie Mac’s weekly survey of mortgage rates. The 15-year fixed rate mortgage stood at 5.71%, up from 5.63% the prior week.
This is the fourth week in a row that mortgage rates increased — all after the Federal Reserve cut the benchmark rate 50 basis points.
The continued strength of the economy is driving mortgage rates higher, said Sam Khater, Freddie Mac’s chief economist, in a statement.
“Over the last few years, there has been a tension between downbeat economic narrative and incoming economic data stronger than that narrative,” Khater said. “This has led to higher-than-normal volatility in mortgage rates, despite a strengthening economy.”
Still, both the 30- and 15-year fixed rate mortgages are far lower than recent highs. A year ago, the 30-year rate averaged 7.79% and the 15-year rate averaged 7.03%. The survey is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
