(Bloomberg) -- Mortgage rates in the US rose, ramping up the pressure on homebuyers.
The average for a 30-year, fixed loan was 6.82%, up from 6.79% last week, Freddie Mac said in a statement Thursday.
House hunters are confronting a market that became less affordable in recent years as borrowing costs rose and prices stayed high. More than a third of home purchases were made in cash in February, according to Redfin Corp.
“Elevated mortgage rates have been a persistent market challenge, holding back first-time homebuyers and repeat homebuyers alike,” said Danielle Hale, chief economist at Realtor.com.
The Federal Reserve is weighing its next steps as recent data have pointed to strength in the economy. Factory activity expanded in March for the first time since September 2022, while the labor market has held up.
This week, Fed Chair Jerome Powell said that the central bank will wait for clearer signs on when to cut its benchmark rate, a move that he expects will be appropriate to make at some point this year.
“While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near term,” Sam Khater, Freddie Mac's chief economist, said in a statement. “On the plus side, inventory is improving somewhat, which should help temper home-price growth.”
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