Mortgage rates in the U.S. have increased for the fifth consecutive week. Freddie Mac announced that the average rate for a 30-year fixed mortgage is now 6.72%, up from 6.54% the previous week. This marks a rise from the two-year low of 6.08% reached in late September, contributing to higher borrowing costs that further reduce the purchasing power of homebuyers already struggling to find affordable housing.
The uncertainty surrounding the U.S. presidential election results could also prompt some potential buyers to delay their purchasing decisions. Strong economic data supports the Federal Reserve's case to slow down interest rate cuts, with a key inflation indicator reaching its highest monthly increase since April. The Federal Reserve's policy meeting is scheduled for next week.
Upcoming potential turning points, including the jobs report and decisions regarding the 2024 election and Federal Reserve rates, may cause continued fluctuations in mortgage rates. Despite ongoing uncertainties, Freddie Mac's Chief Economist, Sam Khater, notes that mortgage rates appear to be peaking and are not expected to reach the highs seen earlier this year.
