U.S. mortgage rates increased this week, reaching their highest levels since July, with the 30-year fixed rate climbing by six basis points to nearly 6.9%. A year ago, the rate was 6.62%. The average 15-year fixed rate rose by thirteen basis points to over 6% compared to nearly 5.8% a year earlier. Freddie Mac’s chief economist, Sam Khater, noted affordability challenges persist, but rising pending home sales suggest renewed buyer activity. Rates are being influenced by elevated bond yields and the Federal Reserve’s stance on controlling inflation, which remains above the 2% target.
