This week’s surge in U.S. mortgage rates has furthered skepticism about any substantial reductions to prospective homebuyer interest rates anytime soon.

As affordability issues escalate and consumers lose hope that interest rates will decline this year, more potential homebuyers are postponing their search. Anticipation of lower loan rates has become the main motivation for individuals not actively looking for homes.

According to Freddie Mac’s most recent Primary Mortgage Market Survey, an average 30-year fixed-rate mortgage (FRM) stood at 6.82 percent as of April 4, 2024.

Mortgage rates remained remarkably steady this week, averaging 6.8 percent according to Sam Khater, Chief Economist at Freddie Mac. “Since 2024 began, 30-year fixed-rate mortgage rates have not gone above seven percent nor fallen below 6.66. Although economic indicators point toward reduced inflation rates and possibly decreased mortgage rates over time, significant decreases don’t seem likely anytime soon; although an increase in housing inventory may help slow home price inflation.”

Key Points from Freddie Mac:

As of April 4, 2024, the average rate for a 30-year FRM had increased slightly to 6.82 percent – this represents an increase from its previous week’s average of 6.79 percent and represents a slight jump from its rate at this time last year which stood at 6.28 percent.
The average 15-year FRM rate fell slightly since last week’s average of 6.11 percent; one year ago it stood at 5.64 percent.