{"id":4314,"date":"2023-07-06T18:49:53","date_gmt":"2023-07-06T18:49:53","guid":{"rendered":"https:\/\/frankbuysphilly.com\/mortgage-rates-reach-their-2023-peak\/"},"modified":"2023-07-06T18:49:53","modified_gmt":"2023-07-06T18:49:53","slug":"mortgage-rates-reach-their-2023-peak","status":"publish","type":"post","link":"https:\/\/frankbuysphilly.com\/mortgage-rates-reach-their-2023-peak\/","title":{"rendered":"Mortgage rates reach their 2023 peak"},"content":{"rendered":"
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Mortgage rates jumped this week as investors grapple with persistent positive economic data and a hawkish Fed.\u00a0<\/p>\n
The Freddie Mac\u2019s<\/strong><\/a> Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% down payment, shows the 30-year fixed rate averaged 6.81% as of July 6, up significantly from last week<\/a>\u2019s 6.71%. By contrast, the 30-year was at 5.30% a year ago at this time. <\/p>\n Other mortgage indexes also show rates rising. <\/p>\n The 30-year fixed rate for conventional loans was 7.08% at Mortgage News Daily<\/strong><\/a> on Thursday morning, up 17 basis points from the previous week. HousingWire\u2019s<\/strong> Mortgage Rates Center<\/a> showed Optimal Blue\u2019s<\/strong> 30-year fixed rate for conventional loans at 6.92% on Wednesday, compared to 6.69% the previous week.<\/p>\n \u201cMortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,\u201d said Sam Khater, Freddie Mac<\/strong>\u2019s chief economist in a statement. \u201cThis upward trend is being driven by a resilient economy, persistent inflation and a more hawkish tone from the Federal Reserve.\u201d<\/p>\n High rates combined with low inventory continue to price many potential homebuyers out of the market, added Khater.<\/p>\n Markets are still digesting the Federal Reserve\u2019s most recent FOMC meeting, during which Federal Reserve Chair Jerome Powell hinted at additional rate hikes before the end of the year.\u00a0The 10-year Treasury yield was north of 4.0% on Thursday, a threshold not seen since March of this year.<\/p>\n Economic resilience is taking investors aback. Consumer spending keeps growing, as do auto sales, which were expected to soften. Real estate markets also speak to resilient conditions, as buyers have accepted mortgage rates in the new normal of 6% – 7% range and kept a steady pace of sales over the past few months. In addition, builders are recognizing the demand and the opportunity it presents, and they are pushing construction activity<\/a> higher \u2013\u00a0about one-third of homes on the market are new construction, more than double normal levels.<\/p>\n