Mortgage Rates Continue to Climb Toward 8%

Freddie Mac reported Thursday that the average rate for the benchmark 30-year fixed mortgage has now hit 7.79%, up from 7.63% last week and from 7.08% a year ago.

The rate for a 15-year mortgage also climbed, averaging 7.03% after coming in last week at 6.92%. One year ago, the rate on a 15-year fixed note averaged 6.36%.

This is the seventh week in a row that rates have risen, marking the longest stretch of consecutive increases since spring 2022, Freddie Mac said.

Redfin estimates there will only be roughly 4.1 million sales of existing homes across the nation by year’s end due to persistently high mortgage rates and elevated home prices amid low inventory, which are causing prospective buyers to reconsider their plans.

The real estate brokerage also reported that 16.3% of home purchase agreements in the U.S. were canceled last month, the highest rate in nearly a year.