Mortgage rates kick off 2025 with an increase, nearing 7%
Published On Jan 2, 2025, 12:13 PM
Mortgage rates are on the rise, reaching an average of 6.91% for 30-year fixed loans in the U.S., the highest since July 2024. This increase, which marks a consistent climb over three weeks, is exacerbating affordability issues in an already sluggish housing market. Previously, the average was 6.85%, with a notable jump from 6.62% a year ago. The rise in rates is expected to further dampen demand for homes as affordability continues to challenge potential buyers.
Stock Forecasts
XHB
Negative
Increasing mortgage rates often lead to reduced homebuyer demand, impacting the overall real estate market negatively. This trend might affect homebuilders and related sectors, with a possible downturn in stock prices.
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