In the latest Freddie Mac Primary Mortgage Market Survey, released on Thursday, the average rate on a 30-year fixed mortgage rose to 6.84%, up from last week's 6.78%. This is a notable increase from the 7.29% average rate seen a year ago. The rise in mortgage rates comes as existing home sales saw a significant uptick of 3.4% in October, reaching 3.96 million. This surge in home sales follows a dip in rates two months ago, which prompted buyers to act quickly and make successful offers.
Holden Lewis, a home and mortgage expert at NerdWallet, noted that the increase in home sales in October was largely due to mortgage rates dropping below 6.25% in September. This prompted buyers to move quickly, resulting in a higher number of successful offers and closings in October.
Despite the recent increase in mortgage rates, many potential buyers and sellers are waiting to see if rates will fall further. According to a Zillow survey, approximately 80% of mortgage holders currently have rates below 5%. This hesitation may impact the housing market in the coming months as buyers and sellers weigh their options.
The average rate on a 15-year fixed mortgage also saw a slight increase, rising to 6.02% from 5.99% the previous week. This is down from the 6.67% average seen a year ago. Overall, the housing market continues to see fluctuations in mortgage rates and home sales, with buyers and sellers closely monitoring the situation in hopes of making informed decisions.