30-year fixed-rate mortgage has climbed up to 6.82%
Freddie Mac reported on Thursday that the average rate for a 30-year fixed loan was 6.82%, up from 6.79% the previous week.
Homebuyers are facing a less affordable market due to rising borrowing costs and high prices. According to Redfin Corp, more than a third of home purchases were made in cash in February.
"Elevated mortgage rates have been a persistent market challenge, holding back first-time homebuyers and repeat homebuyers alike," said Danielle Hale, chief economist at Realtor.com.
The Federal Reserve is considering its next moves as recent data show strength in the economy. Factory activity expanded in March for the first time since September 2022, and the labor market remains strong.
This week, Fed Chair Jerome Powell stated that the central bank will wait for clearer signs before cutting its benchmark rate, a move he expects will be appropriate at some point this year.
"While incoming economic signals indicate lower rates of inflation, we do not expect rates to decrease significantly in the near term," said Sam Khater, Freddie Mac's chief economist. "On the plus side, inventory is improving somewhat, which should help temper home-price growth."
