The 30-year fixed-rate mortgage rate reached its highest level for 2023 in the week of July 4, according to data from Freddie Mac. The average 30-year fixed-rate mortgage had an interest rate of 6.81 percent as of July 6, 1.51 percent higher than one year ago.
“Mortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,” Freddie Mac’s Chief Economist Sam Khater said. “This upward trend is being driven by a resilient economy, persistent inflation and a more hawkish tone from the Federal Reserve. These high rates combined with low inventory continue to price many potential homebuyers out of the market.”
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20 percent down and have excellent credit.
Mortgage applications increased 0.9 percent on a seasonally adjusted basis week-over-week, according to Mortgage Bankers Association’s (MBA) Market Composite Index for the week ending July 7. On an unadjusted basis, the index decreased 19 percent week-over-week.
“Incoming economic data continue to send mixed signals about the economy, with the overall impact leaving Treasury yields higher last week as markets expect that the Federal Reserve will need to hold rates higher for longer to slow inflation,” MBA Vice President and Deputy Chief Economist Joel Kan said. “The jumbo rate also increased to 7.04 percent, a record high for the jumbo series, which dates back to 2011.”
The refinance index dropped 1 percent from the previous week and 39 percent from the same week a year ago, according to MBA. The seasonally adjusted purchase index rose 2 percent week-over-week.