Freddie Mac reports over 7% rise in mortgage rates in 2024

McLEAN, Virginia: This week, Freddie Mac reported that U.S. mortgage rates increased by the highest level since June and rose over the seven percent threshold for the first time since December.

The report added that the average rate on a 30-year fixed-rate mortgage rose to 7.10 percent for the week ended April 18 from 6.88 percent the previous week.

The 22-basis point increase was the largest in some ten months, it further added.

Sam Khater, Freddie Mac's chief economist, said, "As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future."

During 2023's fourth quarter, buyers saw rates on home loans ease, but they have steadily increased since January. While rates remain below two-decade highs, they neared eight percent in October.

Following the Federal Reserve's rate hike campaign launched in 2022, high mortgage rates limited housing inventories in 2023.