Government-backed lender Freddie Mac announced that the 30-year fixed-rate mortgage averaged 4.72 percent this week, up 4.65 percent, marking the fifth consecutive week of growth, and a seven-and-a-half-year high.
The rise in rates has industry experts evaluating the latest pressure on the already softening market. Sam Khater, chief economist for Freddie Mac, says, “consumer confidence is at an 18-year high, and job gains are holding steady. These two factors should keep demand up in coming months,” while National Association of Realtors' chief economist Lawrence Yun adds, "job creation means second or third incomes being added to households which gives consumers the financial confidence to go out and make a home purchase,” MarketWatch reports.
Mortgage rates track the U.S. 10-year Treasury note, which powered higher over the past week as investors braced for the Federal Reserve to raise short-term interest rates for the third time this year. The past week has brought a flurry of housing data, none of it rosy. In August, sales of existing homes were flat, sales of new homes were higher but sales tallies in previous months were marked sharply down from initial estimates, and home-contract signings swooned.
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