Mortgage rates rose slightly for the second consecutive week, according to the weekly survey from Freddie Mac.
- The 30-year fixed rate mortgage averaged 6.66% for the week ending January 11th, up from last four basis points from last week and the highest level since the third week in December.
- The 15-year fixed rate mortgage averaged 5.87% for the week ending January 1tth, down two basis points from last week and the third straight weekly decline.
One Year Ago. The 30-year rate is 33 basis points higher and the 15-year was up 35 basis points when compared to the same time last year.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, notes that despite rates falling affordability is still the biggest issue facing housing. “Even this slight uptick in demand, combined with inventory that remains tight, continues to cause prices to rise faster than incomes, meaning affordability remains a major headwind for buyers. Potential homebuyers should look closely at existing state and local resources, such as down payment assistance programs, which can considerably help defray closing costs.”
BOTTOM LINE: Rates might be rising but not by a significant amount. Considering we’ve seen a hotter than expected jobs report and now a hotter than expected inflation report I am surprised rates haven’t moved higher.