Homebuyers advised to shop around with different lenders as mortgage rate nears 7%

Interior view of a house under construction

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30-year fixed-rate mortgage averaged 6.70% with an average 0.9 point for the week ending Sep. 29, up from last week when it averaged 6.29%; higher than 3.01% a year ago, according to the Freddie Mac Primary Mortgage Survey.

15-year fixed-rate mortgage averaged 5.96% with an average 1.3 point, up from last week when it averaged 5.44% and a year ago at this time, the 15-year FRM averaged 2.28%.

5-year Treasury indexed hybrid adjustable-rate mortgage averaged 5.30% with an average 0.4 point, up from last week when it averaged 4.97% and a year ago at this time, the 5-year ARM averaged 2.48%.

"Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year," Chief Economist Sam Khater said.

"This means that for the typical mortgage amount, a borrower who locked-in at the higher end of the range would pay several hundred dollars more than a borrower who locked-in at the lower end of the range," Khater added.

The large dispersion in rates means it has become even more important for homebuyers to shop around with different lenders, according to Khater.

The mortgage applications have been impacted as a result.

"Applications for both purchase and refinances declined last week as mortgage rates continued to increase to multi-year highs following more aggressive policy measures from the Federal Reserve to bring down inflation," Joel Kan, Mortgage Bankers Association's associate vice president of economic and industry forecasting, said.

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