Mortgage rates are above their 52-week average this week, with the rising rates making it difficult for potential buyers to act, according to the Freddie Mac Primary Mortgage Survey.
30-year fixed-rate mortgage averaged 6.65% for the week ending Mar. 2, up from last week when it averaged 6.50% and higher than 3.76% a year ago.
15-year fixed-rate mortgage averaged 5.89%, up from last week when it averaged 5.76% and higher from 3.01% a year ago.
"As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent," Chief Economist Sam Khater said.
"Lower mortgage rates back in January brought buyers back into the market. Now that rates are moving up, affordability is hindered and making it difficult for potential buyers to act, particularly for repeat buyers with existing mortgages at less than half of current rates," Khater added.
Here is a look at the mortgage rate movements since the beginning of 2023:
Mortgage applications dropped ~6% this week as inflation puts pressure on rates.