The average 30-year fixed-rate mortgage rose to 6.30% compared to 6.26% a week ago, according to Freddie Mac, marking the first weekly rise since July. The jump comes despite the Fed cutting rates by 25 bps last week.
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Mortgage rates remain elevated compared to the past decade, but are also hovering near a one-year low. In addition, affordability continues to be an issue for prospective homebuyers with home prices near all-time highs.
Existing Home Sales Remain Weak
Existing home sales were muted in August, falling by 0.2% month-over-month to an annualized rate of 4.00 million, which was above the consensus estimate of 3.95 million.
“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said National Association of Realtors (NAR) chief economist Lawrence Yun.
The median U.S. home price rose by 2% in August to $422,600, the highest ever for the month. Prices have ticked lower from June when they reached an all-time high of $435,300.
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