Mortgage rates rose again this week, continuing their upward march and contributing further to plummeting demand in the housing market as more would-be buyers retreat. Freddie Mac's latest Primary Mortgage Market Survey released Thursday shows the average rate for the benchmark 30-year fixed-rate mortgage jumped to 7.49%, up from 7.31% last week and from 6.66% a year ago. The rate for a 15-year mortgage also climbed, averaging 6.78% after coming in last week at 6.72%.
Typically, in a market where interest rates rise as fast they have under the Fed's aggressive rate-hike campaign, home prices would be expected to pull back. But prices remain high due to a lack of homes for sale as more homeowners who are locked in at lower interest rates stay put rather than sell. Realtor.