Mortgage Rates Hit 7.40%, Seventh Straight Weekly Rise
The average rate on a 30-year fixed mortgage rose to 7.40% this week, Freddie Mac reported on Thursday. That is up from 7.28% a week ago and 6.30% a year earlier, and it is the highest reading since November 2023. It is the seventh weekly increase in a row.
Key numbers
-
30-year fixed: 7.40% (7.28% last week; 6.30% a year ago)
-
15-year fixed: 6.73% (6.60% last week; 5.53% a year ago)
-
Since late August: the 30-year rate has gone from 6.66% (August 27) to 7.40%
What it costs
On a $300,000 loan, principal and interest comes to about $2,077 a month at 7.40%, against about $1,857 at last year's 6.30%. That is roughly $220 more every month, or about $2,640 a year (our calculation).
Why rates keep rising
Realtor.com senior economist Joel Berner pointed to the 10-year Treasury yield, which averaged 5.28% this week, 9 basis points higher than the week before. He described a mix of inflation expectations, a broad bond-market selloff and rising government borrowing that is pushing yields, and mortgage rates, higher. The 10-year yield was near 5.22% on Thursday afternoon.
Other gauges are even higher
-
Mortgage News Daily: 7.59% on Wednesday
-
Mortgage Bankers Association: 7.49% for the week ended last Friday
-
Daily lender quotes on Thursday ran around 7.5% for a 30-year loan
Freddie Mac's number is an average of loan applications from Thursday through Wednesday, so it can trail what lenders quote today.
What buyers can do
Compare at least three lenders, look at APR as well as the rate, and ask about buydowns or float-down locks. If you plan to move or refinance within several years, an adjustable loan may lower your starting payment, but the rate can reset higher.