Mortgage
rates
continued
their
ascension
toward
7%
this
week,
raising
doubts
about
the
approaching
spring
homebuying
season. 

The
30-year
fixed-rate
mortgage
averaged
6.90%
as
of
Feb.
22,
an
increase
from

last
week’s
figure
of
6.77%,
according
to


Freddie
Mac’s
Primary
Mortgage
Market
Survey
released
on
Thursday. 

Meanwhile,
the
15-year
fixed
rate
averaged
6.29%
this
week,
up
from
6.12%
during
the
prior
week.
And

HousingWire’s
Mortgage
Rates
Center
showed
that

Polly’s
average
30-year
fixed
rate
for
conventional
loans
was
7.19%
on
Thursday,
up
from
7.09%
at
the
same
time
last
week.

“Strong
incoming
economic
and
inflation
data
has
caused
the
market
to
re-evaluate
the
path
of
monetary
policy,
leading
to
higher
mortgage
rates,”
Sam
Khater,
Freddie
Mac’s
chief
economist,
said
in
a
statement. 

“Historically,
the
combination
of
a
vibrant
economy
and
modestly
higher
rates
did
not
meaningfully
impact
the
housing
market.
The
current
cycle
is
different
than
historical
norms,
as
housing
affordability
is
so
low
that
good
economic
news
equates
to
bad
news
for
homebuyers,
who
are
sensitive
to
even
minor
shifts
in
affordability.”

Even
though
the

Federal
Reserve’s
Federal
Open
Market
Committee
(FOMC)
expressed
cautious
optimism
at
its
meeting
in
January,
policymakers
are
in
no
rush
to
apply
rate
cuts
in
2024.
In
the

FOMC
minutes
released
on
Wednesday,
members
of
the
committee
indicated
that
no
cuts
should
be
expected
until
the
rate-setting
body
held
“greater
confidence”
that
inflation
was
receding.

Recent
surges
in
new
listings
bode
well
for
a
strong
homebuying
season
this
spring.
But
rising
mortgage
rates
could
disrupt
the
plans
of
many
rate-sensitive
buyers,
especially
in
a
market
where
consumers
were
anticipating
lower
mortgage
rates,
according
to

Realtor.com
economist
Jiayi
Xu.

“Consequently,
it
is
crucial
for
homebuyers
to
safeguard
their
budget
against
rate
fluctuations
by
utilizing
a
mortgage
calculator
to
comprehend
the
impact
of
mortgage
rate
changes
on
their
payments
and
purchasing
plans,”
Xu
said
in
a
statement. 

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