FX.co ★ Mortgage Rates Surge

Interest rates on home loans, also known as mortgage rates, have seen a notable increase, reaching their highest point since December as reported by mortgage provider, Freddie Mac.

As of February 15, 2024, the 30-year fixed-rate mortgage (FRM) averaged at 6.77 percent, marking an increase compared to the prior week when it stood at 6.64 percent. Comparatively, this time last year saw the 30-year FRM average at 6.32 percent.

The 15-year FRM also saw a rise, averaging at 6.12 percent, up from the previous week's average of 5.90 percent. This similarly evidences an increase when compared to the same time the previous year when the average was at 5.51 percent.

Sam Khater, Chief Economist at Freddie Mac, linked this surge in mortgage rates to the unexpected increase in consumer prices. He commented that the economy had shown a strong performance this year, indicating that rates may remain high for a while. This could potentially impact the forthcoming spring homebuying season. Khater also revealed that comparing data from the last and this year, mortgage applications for purchasing a home in 2024 have fallen in over half of all states.