(June 26): Mortgage rates in the US inched higher as another sluggish spring sales season draws to a close.
The average for a 30-year fixed loan rose to 6.49% from 6.47% a week earlier, Freddie Mac said in a statement on Thursday. The rate was 6.77% a year ago.
The property market has been hampered by elevated borrowing costs, which rose after the conflict in the Middle East drove up energy prices and inflation. The timing coincided with the peak sales season, adding to jitters for buyers and sellers.
In the week ended June 21, new listings declined 1.7% from the prior week to the lowest since February, according to Redfin.
“Rates in the mid-6% range are still a bit better than a year ago, and that continues to offer some support for buyers,” said Kara Ng, a senior economist at Zillow. “But it isn’t enough to create a major affordability breakthrough.”
Zillow expects rates to hover at 6.4% to 6.5% through the summer before easing toward 6.2% by the end of the year.
See also: US new-home sales unexpectedly fall amid high mortgage rates
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