Mortgage Rates Rise Above Seven Percent for the First Time in 2024

The average rate for a 30-year fixed-rate mortgage surpassed 7 percent for the first time this year, according to mortgage giant Freddie Mac.

Details: After gradually descending through the winter months, mortgage rates are again on the rise, rising to 7.1% this week from 6.88% last week.

Key Quote: The Freddie Mac report states, “As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future.” The Associated Press (Lean Left bias) quoted Lisa Sturtevant, chief economist at Bright MLS, stating, “With no cuts to the federal funds rate imminent and with the economy still strong, there is no reason to see downward pressure on mortgage rates right now. It seems increasingly likely that mortgage rates are not going to come down any time soon.”

How the Media Covered It: The Associated Press stated, “the U.S. housing market remains constrained by relatively few homes for sale and rising home prices.” Fox Business (Lean Right bias) stated, “The combination of persistently elevated rates and record-high home prices has left the housing market stalled for months.” The Wall Street Journal (Center bias) stated, “higher rates and uncertainty about the new commission structure now threaten to halt momentum during the crucial spring home-buying season.”