Housing News

Mortgage Rates Continue Rising, But Are Still Lower Than Last Year

Mortgage interest rates continued to trend upward in the last week, due to the ongoing conflict in Iran. However, rates remain lower than they were at this point last year.

Rates averaged 6.38% for 30-year, fixed-rate loans in the week ending March 26, according to Freddie Mac data. That was up from 6.22% in the previous week, but down from 6.65% at this time last year.

Despite the recent uptick in rates, homebuyers and homeowners have not been entirely deterred from seeking a new home or a refinance of their existing loan.

“The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility,” said Freddie Mac’s Chief Economist Sam Khater in a statement. “Purchase and refinance applications are up year-over-year.”

Refinance mortgage applications are running 52% higher than they were last year, while purchase applications were up 5% year-over-year in the week ending March 20, according to the latest data from the Mortgage Bankers Association.

Even small decreases in rates may add up to big savings over time for homeowners who refinance their loans.

However, this volatility in rates will likely remain the status quo as long as the current geopolitical events continue.

“If the conflict remains limited and energy prices stabilize, we could see rates settle back down toward 6%,” said Bright MLS Chief Economist Lisa Sturtevant in a statement. The multiple listing service covers the mid-Atlantic region.

“However, for now, the rebounding spring homebuying season many had been hoping for is being tempered by these external pressures, leading to a more limited and uncertain market environment,” Sturtevant added.