By Aarthi Swaminathan
The 30-year mortgage rate has not been at this level since mid-2002
By the Numbers: The housing sector continues to face headwinds.
The 30-year fixed-rate mortgage averaged 7.08% as of Nov. 10, according to data released Thursday by Freddie Mac (FMCC).
The 30-year-old was last at this level in mid-2002.
That’s an increase of 13 basis points from the previous week – one basis point equals one hundredth of a percentage point, or 1% of 1%.
Last week, the 30-year was at 6.95%. Last year, the 30-year averaged 2.98%
The average 15-year mortgage rate rose to 6.38%.
“The housing market is the most interest rate sensitive segment of the economy, and the impact of rates on homebuyers continues to evolve,” said Sam Khater, chief economist at Freddie Mac, in a press release.
“Home sales have declined significantly and as we approach the end of the year, they are not expected to improve,” he added.
The variable rate mortgage averaged 6.06%, up from the previous week.
What do they say? Some buyers are tired of waiting for rates to stabilize and jump with rates of 7%, an industry group said.
“Although mortgage rates remained above 7% last week, home buying inquiries rose for the first time in six weeks,” said Bob Broeksmit, president and CEO of Mortgage. Bankers Association, in a statement.
Still, “many potential buyers are waiting for mortgage rate volatility to decrease, along with a clearer picture of the economic outlook,” he added.
Mortgage demand remains weak overall as refinances plunge, the MBA said Wednesday.
The yield on the 10-year Treasury fell to 3.8% in Thursday’s morning trading session.
Do you have ideas on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at email@example.com
(END) Dow Jones Newswire
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