Mortgage rates rose for the fifth consecutive week, but it may be temporary.
Mortgage rates have risen to their highest level since the beginning of August, and home buyers may find fluctuating rates, especially over this next week.
“With several potential inflection points happening over the next week, including the jobs report, the 2024 election and the Federal Reserve interest rate decision, we can expect mortgage rates to remain volatile,” says Sam Khater, Freddie Mac’s chief economist. “Although uncertainty will remain, it does appear mortgage rates are cresting, and we do not expect them to reach the highs that we saw earlier this year.”
Still, this week marked the fifth consecutive week for mortgage rate increases, with 30-year rates averaging 6.72%, according to Freddie Mac. At this week’s average, assuming a 20% down payment, a buyer purchasing a home for $400,000 would have a monthly mortgage payment of $2,069. With a 10% down payment, a borrower’s monthly mortgage payment would be $2,328, says Jessica Lautz, deputy chief economist of the National Association of REALTORS®.
Lautz predicts that following next week’s election and the Fed’s meeting on its benchmark interest rate, mortgage rates likely will dial back into the mid-6% range.
Until then, “many home buyers may take a quick pause this week as attention has turned to the election,” she notes. “They may also be waiting for interest rates to settle in the coming weeks. But remember, any pause creates build-up demand in the market.”
Here’s a closer look at national averages with mortgage rates for the week ending Oct. 31, according to Freddie Mac:
- 30-year fixed-rate mortgages: averaged 6.72%, rising from last week’s 6.54% average. A year ago, 30-year rates averaged 7.76%.
- 15-year fixed-rate mortgages: averaged 5.99% this week, increasing from last week’s 5.71% average. A year ago, 15-year rates averaged 7.03%.
