According to a study released by Freddie Mac on Thursday, mortgage rates in the United States increased for the fourth consecutive week, reaching a two-month high and once again becoming a factor that is hindering traffic among prospective house buyers who are rate-sensitive.
As of the week that ended on February 29, the average interest rate on a mortgage with a 30-year fixed rate increased to 6.94%, which is an increase over the previous week's rate of 6.90%.
Despite the fact that we are getting closer to spring, which is traditionally a busy season for homebuying, the recent bounce in interest rates has dampened the already timid pace of homebuyers.
According to Sam Khater, the chief economist at Freddie Mac, "even though sales of newly built homes are moving in a positive direction, affordability challenges continue to be posed by higher rates and elevated prices, which may cause prospective homebuyers to remain on the sidelines."
The percentage is still lower than the two-decade highs around 8% that were attained in October.
The benchmark policy rate of the Federal Reserve has remained steady since July, while the rates that are tracked by Freddie Mac have remained on the lower end of the range since December.
Due to the restricted availability of homes and the rise in housing prices, buyer traffic was reduced in the previous year due to the high mortgage rates.
According to data provided by the National Association of Realtors, the number of pending home sales decreased by 4.9% in January. This indicates that home sales continue to be under pressure.
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