Mortgage Rates Climb To 7.40%, Up More Than A Full Point From Year Ago
By CU Today Staff —
MCLEAN, Va.—Mortgage rates continued climbing this week, with the average 30-year fixed-rate mortgage reaching 7.40%, up from 7.28% a week earlier and significantly higher than a year ago, according to Freddie Mac.
The latest Primary Mortgage Market Survey, released Oct. 8, showed the 30-year rate is now 1.10 percentage points above the 6.30% average recorded at this time last year. The increase adds to borrowing costs for prospective homebuyers and creates additional challenges for homeowners considering refinancing.
The 15-year fixed-rate mortgage also moved higher, averaging 6.73%, compared with 6.60% the previous week. A year earlier, the 15-year rate averaged 5.53%, putting the current average 1.20 percentage points higher.
“As market conditions continue to evolve, borrowers should remember that shopping around for a mortgage rate and getting multiple quotes can potentially save them thousands over the loan’s lifetime,” said Sam Khater, Freddie Mac's chief economist.
Originally reported by CU Today.