Mortgage prices climbed for a 5th straight week as pre-election volatility remained to shake the bond market.
The average 30-year fixed-rate mortgage was 6.72% in the week via Wednesday, according to Freddie Mac information, up from 6.54% a week previously.
15-year home mortgage prices additionally raised to 5.99% from 5.71% a week back.
“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,” Sam Khater, Freddie Mac’s principal financial expert, stated in a declaration. “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.”
Average mortgage rates have been marching steadily higher after reaching a two-year low of 6.08% in late September. Mortgage rates move in part based on expectations for future Fed rate changes, and a string of strong economic data has dampened traders’ expectations for bigger and more frequent benchmark interest rate cuts from the Federal Reserve.
Ten-year Treasury yields, which closely track mortgage rates, have also risen dramatically in recent weeks in response to the data and fears about the ultra-tight presidential race.
New financial information launched today will certainly supply crucial hints on the instructions of home mortgage prices from right here. The latest reading of the Fed’s chosen rising cost of living scale, launched Thursday, revealed rates climbed up 2.1% in the in 2015, near the Fed’s 2% target.
Traders see near-certain odds that the Fed will trim benchmark interest rates by 0.25 percentage point at its meeting next week, but they’re less certain about more easing in December due to signs of stubborn inflation in some parts of the economy. By one measure that strips out volatile food and fuel costs, prices rose 2.7% annually in September.
Jobs data released on Friday will provide a last look at the health of the economy before the Fed meets.
For now, higher mortgage rates have dented refinancing demand, with applications to refinance down 5% week-over-week through Friday, according to the Mortgage Bankers Association. Purchase applications rose 5% compared to a week earlier, which was shortened by a federal holiday.
Claire Boston is an elderly press reporter for Yahoo Finance covering real estate, home mortgages, and home insurance policy.
