Reaching a three-month high and their fifth-consecutive week of increases, the average 30-year fixed rate mortgage climbed to 6.72%, up from last week’s average of 6.54%, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac, released Thursday.
“Increasing for the fifth consecutive week, mortgage rates reached their highest level since the beginning of August,” said Sam Khater, Freddie Mac’s chief economist. “With several potential inflection points happening over the next week, including the jobs report, the 2024 election, and the Federal Reserve interest rate decision, we can expect mortgage rates to remain volatile. Although uncertainty will remain, it does appear mortgage rates are cresting, and we do not expect them to reach the highs that we saw earlier this year.”
This week’s numbers:
- The 30-year FRM averaged 6.72% as of October 31, 2024, up from last week when it averaged 6.54% . A year ago at this time, the 30-year FRM averaged 7.76%.
- The 15-year FRM averaged 5.99%, up from last week when it averaged 5.71%. A year ago at this time, the 15-year FRM averaged 7.03%.
Realtor.com Senior Economist Ralph McLaughlin, commented, “This quick rise in mortgage rates stymied some of the momentum that was brought to the housing market in September, when rates dropped to near 6%. While we expect rates to settle back down to around 6.3% by the end of the year, it has been a combination of robust employment data combined with increasing uncertainty over the outcome of next week’s election that have prevented downward progress in mortgage rates.”
Bright MLS Chief Economist Lisa Sturtevant, commented, “If mortgage rates begin to fall again as we move past the election, it could be a particularly busy late fall/early winter market. The Federal Reserve is set to meet during the two days immediately following the election. Right now, the consensus is that the Fed will cut interest rates by 25 basis points at that meeting. A strong jobs report tomorrow could make for more discussion, but it is very unlikely that the Fed will pass on a cut.
“Mortgage rates are, of course, influenced by far more than the Fed. Even with a Fed rate cut, mortgage rates could remain high amidst either ongoing uncertainty or a weakening economy. If that is the case, the 2024 housing market could end with a sputter.”
