WASHINGTON–Would-be homebuyers who had been hopeful for a break on mortgage rates in 2024 aren’t getting their wish, at least not yet. Mortgage rates ticked up last week and analysts say they could go even higher.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.88% in the week ending April 11, up from 6.82% the previous week. One year ago, the average 30-year fixed-rate was 6.27% as of the same date.
Some mortgage experts have predicted rates could cross the 7% threshold in the near future, a point that turns off many buyers who give up on shopping.
“Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path,” Sam Khater, Freddie Mac’s chief economist, said in a released statement. “While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different economic picture.”
10-Year Treasury Moves Up
Mortgage rates track the benchmark yield on the 10-year U.S. Treasury note, which moves in anticipation of the Fed’s decisions. The yield topped 4.5% last week, which marked the highest level since November 2023.
As CUToday.info also reported, the latest Consumer Price Index shows inflation remains higher than expected, reducing the likelihood of a Fed move to cut rates as early as many had hoped.
The National Association of Realtors did report earlier that more homes came to market in February, which has helped to relieve some of the inventory pressures.
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