Mortgagexa0ratesxa0edge closer to 7%, dampening start of spring homebuying season

Mortgage Rates Increase as Homebuying Season Begins #

Mortgage rates have risen for the fourth consecutive week, approaching 7% just as the peak homebuying season commences. The 30-year fixed-rate mortgage averaged 6.94% in the week ending February 29, up from 6.90% the previous week. This increase has dampened homebuyer momentum as rates reached a two-month high. In recent weeks, mortgage rates have been trending higher due to expectations that the Federal Reserve will not cut its benchmark lending rate until later this year. The lack of existing inventory is also making it difficult for aspiring buyers to enter the market.