Mortgage Rates Rise Again as Fed Signals More Rate Increases

By Will Feuer

Mortgage rates rose again after the Federal Reserve signaled that it could more aggressively raise interest rates as it looks to cool inflation, according to government-backed housing-finance agency Freddie Mac.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage rose to 6.73% from 6.65% the prior week. A year ago, the average rate was 3.85%.

The average 15-year rate rose to 5.95% from 5.89% last week, Freddie Mac said. A year ago, the 15-year fixed-rate mortgage rate averaged 3.09%.

"Mortgage rates continue their upward trajectory as the Federal Reserve signals a more aggressive stance on monetary policy," said Sam Khater, Freddie Mac's Chief Economist.

"Overall, consumers are spending in sectors that are not interest-rate sensitive, such as travel and dining out. However, rate-sensitive sectors, such as housing, continue to be adversely affected," he said. "As a result, would-be home buyers continue to face the compounding challenges of affordability and low inventory."

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

March 09, 2023 12:14 ET (17:14 GMT)

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