The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) in the US rose to 6.75% in the week ended December 13th, 2024.
US mortgage rates rise again
This is up from 6.67% in the previous week, which had marked the lowest rate in seven weeks, according to the Mortgage Bankers Association. This recent increase, the first in four weeks, reflects a broader trend of rising Treasury yields as financial markets adjust to evolving expectations around monetary policy. Investors are pricing in a slower pace of Federal Reserve rate cuts in 2025, given persistent inflationary pressures and signs of resilience in the economy.
Mortgage rates hike could weigh on housing affordability
The uptick in mortgage rates could weigh on housing affordability and buyer activity, as higher borrowing costs add to the financial burden for prospective homeowners.
