Mortgage Rates Exceed 7% for First Time This Year

Marking a third straight week of increases and moving over 7% for the first time this year, the 30-year fixed-rate mortgage (FRM) averaged 7.10% this week, up from last week’s increase to 6.88%, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac, released Thursday.

The numbers: 

  • The 30-year FRM averaged 7.10 percent as of April 18, 2024, up from last week when it averaged 6.88 percent. A year ago at this time, the 30-year FRM averaged 6.39 percent.
  • The 15-year FRM averaged 6.39 percent, up from last week when it averaged 6.16 percent. A year ago at this time, the 15-year FRM averaged 5.76 percent.

What the experts are saying: 

“The 30-year fixed-rate mortgage surpassed 7 percent for the first time this year, jumping from 6.88 percent to 7.10 percent this week,” said Sam Khater, Freddie Mac’s chief economist. “As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.” Economist, Jiayi Xu commented:

“The Freddie Mac fixed rate for a 30-year mortgage climbed by 0.22 percentage points to 7.1% this week. As the latest CPI data exceeded recent forecasts, it escalated the importance of waiting for clearer signals of easing inflation before making any rate cut. Despite the previous uptick in inflation not being substantial enough to shift the Federal Open Market Committee’s (FOMC) short-term forecast in March, it did lead to an increase in the median forecast for the end of 2025 and 2026 policy rates. However, March’s inflation data increased the likelihood of a revision to the 2024 outlook in June, indicating fewer rate cuts. In other words, we will continue to live in a prolonged period of high rates and face expensive borrowing costs, including high mortgage rates, which exceeded 7 percent for the first time this year.”

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