Mortgage Rates Continue To Rise

Mortgage rates, or interest rates on home loans, increased for the third consecutive week as economy strengthens, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 6.50 percent for the week ending February 23, 2023, up from 6.32 percent last week. A year ago at this time, the average rate was 3.89 percent.

The 15-year FRM this week averaged 5.76 percent, up from 5.51 percent last week. A year ago at this time, the 15-year FRM averaged 3.14 percent.

"The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation," said Sam Khater, Freddie Mac's Chief Economist. "Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually by taking the time to shop among lenders to find a better rate."

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