Mortgage rates rise for second straight week, highest since July
Published On Dec 26, 2024, 1:39 PM
Mortgage rates in the U.S. have risen for the second consecutive week, hitting their highest levels since July. The average rate on a 30-year fixed mortgage has jumped to 6.85% from 6.72% the previous week, while the 15-year fixed mortgage rate increased to 5.92%. Analysts suggest that while there is a slight improvement in home sales, the market continues to struggle with a significant shortage of available homes, which may hinder purchase activity heading into the new year.
Stock Forecasts
XHB
Negative
The increase in mortgage rates typically leads to a cooling in housing activity since higher borrowing costs can deter potential homebuyers. This situation could impact real estate ETFs and homebuilder stocks negatively, as higher financing costs may reduce demand for new homes. Furthermore, ongoing supply constraints combined with rising rates could exacerbate price pressures in the housing market, complicating the investment outlook for related sectors.
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