Mortgage Rates (and Home Prices) Rebound Higher | Mortgages and Advice

Mortgage rates jumped higher this week, with the 30-year rate increasing seven basis points to 7.15%. Fixed rates increased across the board, while adjustable mortgage rates decreased or stayed about the same.

Here are the current mortgage rates, without discount points unless otherwise noted, as of June 29:

  • 30-year fixed: 7.15% (up from 7.08% a week ago).
  • 20-year fixed: 7.24% (up from 7.08% a week ago).
  • 15-year fixed: 6.58% (up from 6.52% a week ago).
  • 10-year fixed: 6.74% (up from 6.61% a week ago).
  • 5/1 ARM: 6.1% (down from 6.12% a week ago).
  • 7/1 ARM: 6.23% (up from 6.22% a week ago).
  • 10/1 ARM: 6.43% (down from 6.45% a week ago).
  • 30-year jumbo loans: 7.22% (up from 7.15% a week ago).
  • 30-year FHA loans: 6.27% with 0.05 point (up from 6.19% a week ago).
  • VA purchase loans: 6.53% with 0.05 point (up from 6.48% a week ago).

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“The supply-demand dynamic is pushing prices higher and underscoring the return of historical seasonality. These trends point toward a new balance in real estate, especially with mortgage rates keeping a steady pace for 10 consecutive months.”

– George Ratiu, chief economist of Keeping Current Matters

Covering the housing market for the past few years has been like riding a roller coaster that defies gravity. Mortgage rates, home prices and housing costs have been climbing to stomach-churning heights as speculators brace for a speedy plunge back to earth. But every time we think we’ve reached the peak, there’s only a modest downward dip. Instead of returning to safe ground, we’re left suspended in midair.

This is the new reality facing homebuyers today, with affordability well beyond reach, especially for first-timers. Current homeowners have the advantage of record-low mortgage rates and housing payments – and even if they do want to sacrifice these perks by selling their home, they’re able to tap into their inflated equity to help fund their next home purchase.

While the golden handcuffs effect has kept existing-home inventory low, increased new home construction has begun to relieve some of that pressure. New home sales are at their highest point in more than a year “as buyers seek alternatives to a small supply of existing properties,” Ratiu says.

But newly constructed homes aren’t a feasible option for all buyers. New builds are typically larger and more expensive than existing homes, not to mention that many new developments are located in the suburbs, farther away from city centers where zoning laws restrict new construction.

“Despite this encouraging news, there remains an urgent need for more homes at the most affordable price points, where the shortage of available inventory is most severe,” says economist Jiayi Xu.

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