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- Mortgage rates climb for second straight week (foxbusiness.com)
Mortgage Rates Edge Upward, But Homebuyers Show Renewed Confidence
Mortgage rates saw a slight increase this week, according to data released Thursday by mortgage buyer Freddie Mac, yet homebuyers appear to be gaining confidence and re-entering the market.
The average rate for a 30-year fixed mortgage climbed to 6.34%, up from 6.30% reported last week. This rate is also higher than the 6.12% average recorded one year ago.
“The 30-year fixed-rate mortgage increased again this week but remains below its 52-week average of 6.71%,” noted Sam Khater, Freddie Mac’s chief economist. Khater added that the lower rates observed over the past few months have led to increased pending home sales, indicating a growing sense of confidence among prospective buyers.
Similarly, the average rate for a 15-year fixed mortgage rose to 5.55%, up from 5.49% last week. A year ago, the average rate for a 15-year fixed note stood at 5.25%.
The slight dip in mortgage rates in recent months has indeed drawn more homebuyers back into the market. New data from the National Association of Realtors revealed that pending home sales, based on signed contracts, saw a 4% increase in August, significantly surpassing analysts’ expectations of a 0.2% rise.
Looking ahead, mortgage rates, which typically follow 10-year Treasury yields, are anticipated to remain within a tight range as markets assess the implications of a potential government shutdown. Jiayi Xu, a senior economist, highlighted the sensitive timing of this disruption, coming shortly after the Federal Reserve’s first policy rate cut in nine months.
Xu warned that a prolonged shutdown could amplify its influence on markets and future monetary policy decisions. She also suggested that increased uncertainty could prompt prospective buyers to postpone home purchases, particularly in metropolitan areas with a larger concentration of federal employees.
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- Mortgage rates climb for second straight week (foxbusiness.com)