The numbers: Mortgage rates inched up this week as the U.S. consumer remains confident about the economy.
The 30-year fixed-rate mortgage averaged 6.81% as of July 27, according to data released by Freddie Mac on Thursday.
It’s down 3 basis points from the previous week — one basis point is equal to one hundredth of a percentage point.
Rates are up from last week, when the 30-year was at 6.78%.
The average rate on the 15-year mortgage rose to 6.11% from 6.06% last week. The 15-year was at 4.58% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.95% as of Thursday afternoon.
What Freddie Mac said: “Higher interest rates continue to dampen activity in interest rate-sensitive sectors, such as housing,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“However, overall U.S. consumer confidence is unwavering, surging to a two-year high in the Conference Board’s Consumer Confidence Index for July 2023,” he added. “Rising consumer confidence often leads to greater spending, which could drive more consumers into the housing market.”
What are they saying? “Applications to buy a home decreased slightly last week as many prospective buyers remain on the sidelines because of ongoing affordability challenges and high mortgage rates,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association.
The MBA said it expects rates to fall around 6% by the end of the year, but be volatile in the coming months.
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