The average 30-year fixed-rate mortgage was 7.10% for the week ending April 18, according to Freddie Mac's latest Primary Mortgage Market Survey. That's an increase from the previous week when it averaged 6.88%. A year ago, the 30-year fixed-rate mortgage averaged 6.39%.
The average rate for a 15-year mortgage was 6.39%, up from 6.16% last week and up from 5.76% last year.
Homebuyers have seen rates teeter near the 7% market since the start of the year. Borrowing costs are likely to continue elevated as the prospect of a Federal Reserve interest rate cut moves further into the distance.
The central bank said at its March meeting that it would continue to monitor inflation and other economic indicators to determine when to lower rates. Market expectations were for a first cut to come early in the summer, but the timeline may be later since the latest inflation figures show it is pushing up again.
"As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year," Freddie Mac's Chief Economist Sam Khater said. "Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future."
