Mortgage rates top 7% but lack of homes still the biggest problem for the market: Freddie Mac

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The average 30-year fixed-rate mortgage increased as Treasury yields hit their highest level since 2007, according to Freddie Mac. But there are still ways for house hunters to save.

The average rate for a 15-year mortgage was 6.46%, up from 6.34% last week and 4.55% last year.

"The last time the 30-year fixed-rate mortgage exceeded 7% was last November," Freddie Mac Chief Economist Sam Khater said. "Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.", which hit the highest level since the summer of 2007 and investors are signaling that the Federal Reserve may raise interest rates again, according to Keeping Current Matters Chief Economist George Ratiu.

"The upside to the strong job market is a firmer financial foundation for households who have weathered a 40-year high surge in prices," Ratiu continued. "The downside to the strong wage gains is that the Fed remains hawkish on the outlook for taming inflation this year."

 

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