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Mortgage rates back on the rise

Mortgage Rates
Posted at 12:31 PM, Feb 16, 2023

The rate for a 30-year mortgage is trending upward. A report released by Freddie Mac on Thursday said the average rate for a 30-year mortgage last week was 6.32%.

This is the second consecutive week mortgage rates have increased.

"The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing," Freddie Mac stated. "Overall housing costs are also increasing and therefore impacting inflation, which continues to persist."

Prior to the recent increases, rates had fallen to their lowest point since Sept. 2022.

The housing market is also facing a decline in new home construction. According to Census data, new home construction was down by 4.5% from December to January. The yearly comparison is much starker. New home construction is down 21.4% when compared to January 2022, the Census reports.

In addition, it's also more expensive to buy a home. The National Realtors Association says the median price for a single-family existing home is $378,700. The organization says that's a 4% increase from a year ago.