Jan 4, 2025 - Business
30-year mortgage rate hits 6-month high
Add Axios as your preferred source to
see more of our stories on Google.
The rate on the 30-year mortgage is hovering close to 7%, a nearly 6-month high, per data from Freddie Mac out Thursday.
Why it matters: Higher rates are putting home buying out of reach for many Americans and simply turning others off from the market.
- Though home sales picked up in the third quarter, even with rising rates, they're still hovering at historic lows.
The big picture: Mortgage rates move in tandem with the rate on 10-year Treasury bonds.
- That's been rising over the past few months, as bond investors fret over whether or not the Fed will continue to cut rates, and what exactly will happen once Trump takes office.
What's next: Most forecasts see mortgage rates declining a smidge in 2025 to around 6 - 6.5% — probably not enough to jolt the moribund real estate market out of its slump.
