Mortgage rates rose for the first time in over a month, according to weekly data compiled by mortgage buyer Freddie Mac.
The 30-year fixed-rate mortgage (FRM) averaged 6.39% as of April 13, up from 6.27% recorded last week. One year ago, the 30-year FRM averaged 5.11%.
Meanwhile, the 15-year fixed-rate mortgage averaged 5.76%. Last week it averaged 5.54%. At the same time in 2022, the 15-year FRM averaged 4.38%.
“For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s Chief Economist. “Home prices have stabilized somewhat, but with supply tight and rates stuck above six percent, affordable housing continues to be a serious issue for many potential homebuyers.”
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Khater contested that, “Unless rates drop into the mid five percent range, demand will only modestly recover.”
Aaron Kirman, the CEO of AKG | Christie’s International Real Estate, which specializes in Southern Californian luxury real estate told FOX Business that the, “market has been somewhat frozen. Sellers are hesitant to give up their low-interest rates and move, and a lot of buyers have been priced out of the marketplace due to increased interest rates.”
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Kirman continued that, “interest rates rose so fast and so high that buyers are still feeling the sticker shock.”
Even at the top the ultra-wealthy are hesitant to buy property right now. “They are uncertain if prices will continue to fall, and a good deal is important at any price level.