Mortgage rates keep climbing, dampening homebuyer demand: Freddie Mac

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Mortgage rates keep climbing, dampening homebuyer demand: Freddie Mac
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The average 30-year fixed-rate mortgage increased to 7.149% for the week ending Oct. 5, according to Freddie Mac's latest Primary Mortgage Market Survey.

Mortgage rates climbed north of 7% and buyers face a real possibility that they may continue rising as long as economic indicators remain resilient, according to Freddie Mac. The average 30-year fixed-rate mortgage increased to 7.149% for the week ending Oct. 5, according to Freddie Mac's latest Primary Mortgage Market Survey. That's an increase from the previous week when it averaged 7.31%. A year ago, the 30-year fixed-rate mortgage averaged 6.66%.

What the Fed does next will rely heavily on upcoming economic reports, particularly the September jobs report, according to Realtor.com Economist Jiayi Xu. At the September meeting, the Fed projected a 3.8% unemployment rate for 2023, down from 4.1% in June. "In light of the Federal Reserve's indication of a 'tighter for longer' monetary policy, we anticipate that mortgage rates will persist above the 7% threshold for an extended period," Xu said.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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