Mortgage Rates Rises, Nears 7%

(RTTNews) - Mortgage rates, or interest rates on home loans, gained this week and is nearing 7 percent mark, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage averaged 6.90 percent as of August 3, 2023, up from last week when it averaged 6.81 percent. A year ago at this time, the 30-year FRM averaged 4.99 percent.

The 15-year fixed-rate mortgage averaged 6.25 percent, up from last week when it averaged 6.11 percent. A year ago at this time, the 15-year FRM averaged 4.26 percent.

"The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week," said Sam Khater, Freddie Mac's Chief Economist. "Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory."