Freddie Mac reported Thursday that the average 30-year fixed-rate mortgage (FRM) increased to 7.17% from 7.10% last week. This rate stood at 6.43% a year ago. Despite the rise, "purchase demand remains steady," noted Sam Khater, Freddie Mac’s Chief Economist.
Sales of newly built homes have surged to the highest level since December 2022, suggesting adaptation by homebuyers to the persistently high rates. The 15-year FRM also saw a rise, reaching 6.44% from 6.39% last week and 5.71% last year.
The U.S. construction sector experienced a noticeable slowdown in March, with building permits and housing starts both declining compared to February. Total existing-home sales receded 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March.
