Mortgage rates rise again, finishing the year at 6.85% — just about the way they started
Published On Dec 26, 2024, 12:34 PM
Mortgage rates have risen to 6.85% for a 30-year fixed mortgage, reflecting an increase from 6.72% in the previous week. This upward trend follows a period of slight improvement in home sales but is influenced by expectations that the Federal Reserve will implement fewer interest rate cuts than initially anticipated. The ongoing low supply of homes contributes to market difficulties even as a strong economy could potentially increase housing activity.
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The rise in mortgage rates suggests a tighter housing market environment. Investors in the real estate sector may want to be cautious due to rising borrowing costs potentially dampening demand for housing, which may impact real estate companies negatively.
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