National home loan charges increase, reaching 6.22% in new report
This week, Freddie Mac reported the average 30-year fixed mortgage rate increased to 6.22%, up from 6.19% last week but remaining near the year’s low. The 15-year rate also rose to 5.54% from 5.44% previously, compared to 5.84% a year earlier.
Mortgage rates are shaped by Federal Reserve policy, investor expectations, and the 10-year Treasury yield, which stood at 4.12% midday Thursday, slightly above last week’s level. The central bank’s recent rate reductions do not directly translate to home loan costs.
Previous Fed cuts in autumn 2024 were followed by rising mortgage rates, which peaked above 7% in January as Treasury yields moved toward 5%. However, rates have fallen since summer, reaching a 30-year mortgage low of 6.17% on October 30.
Lower rates supported a fourth consecutive monthly increase in October existing home sales. Refinancing applications jumped 14% last week, comprising 58% of all mortgage activity, while purchase applications rose nearly 5%.
Economists project the 30-year rate will average just above 6% in the coming year, a level expected to offset modest gains in home prices.