Recent data from Freddie Mac reveals that mortgage rates have climbed to nearly 7%, marking the highest level in almost six months. This increase is a concern for potential homebuyers, as rates have risen from 6.85% in the prior week to 6.91% in the final week of 2024. A year ago, the average mortgage rate was 6.62%.
Despite the Federal Reserve's recent quarter-point interest rate cut, which was the third cut of the year, mortgage rates continue to rise. The central bank adjusted its outlook for further rate cuts due to inflation exceeding its 2% target and a strong labor market.
