The rate for a 30-year fixed-rate mortgage averaged 4.65 percent for the week of September 20 — the highest since May. Last week, the rate was at 4.60 percent. Last year, it averaged only 3.83 percent.
As mortgage rates rise, buying a home could become more challenging than it already is, warned Sam Khater, Freddie Mac’s chief economist.
“Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers – especially first-time buyers,” Khater said in a statement. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances and global trade tensions.”
“Higher mortgage rates will undoubtedly contribute to a further slowdown in home price growth as higher costs force buyers to choose smaller, less expensive homes or postpone their search,” Hale said in a statement.