Headline Roundup • October 11th, 2024
Weekly Mortgage Rates Spike, Demand Drops
Summary from the AllSides News Team
The rate for a 30-year mortgage increased to 6.32% this week, up from 6.12%. The average rate on a 30-year loan one year ago was 7.57%.
The Details: The average rate on 15-year loans rose to 5.41% from 5.25%. Refinancing applications had been rising for the past several months but fell to 9% for the week. Current applications are still nearly 160% higher than this time last year, when mortgage rates were 131 basis points higher.
For Context: According to a Zillow survey, 80% of mortgage holders have a rate below 5%. This week's rate was the highest since August, and the biggest single-week jump since April.
How the Media Covered It: Yahoo! News (Lean Left) emphasized the short-term jump, not comparing it to rates a year ago until the last paragraph of the article. CNBC (Center) and Fox Business (Lean Right) emphasized the drop in demand.
Featured Coverage of this Story
Mortgage rates rose sharply last week, a new challenge for beleaguered house hunters and potential refinancing candidates.
The average rate on a 30-year fixed-rate loan jumped to 6.32% for the week through Wednesday, according to Freddie Mac, up from 6.12% a week earlier. It’s the biggest week-over-week increase since April.
Average 15-year loans rose to 5.41% from 5.25%.
Patrick T. Fallon | AFP | Getty Images
An abrupt turn higher for mortgage interest rates caused weekly demand from both potential homebuyers and current homeowners to drop. Total mortgage application volume fell 5.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $766,550 or less, increased to 6.36% from 6.14%, with points rising to 0.62 from 0.61, including the origination fee, for loans with a 20% down payment. That was the highest rate since August.
Mortgage rates jumped markedly this week, sending demand down for a second straight week.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage surged to 6.32% from last week's reading of 6.12%. The average rate on a 30-year loan was 7.57% a year ago.
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