US mortgage rates rise to 6.22% after four weeks of declines

[NEW YORK] Mortgage rates in the US climbed after four weeks of declines, a reversal that will further strain affordability for buyers. 

The average for 30-year, fixed loans was 6.22 per cent, up from 6.17 per cent last week, data from Freddie Mac show.

The rise in borrowing costs comes after the Federal Reserve cut its benchmark rate by a quarter-point in its meeting last week. Chair Jerome Powell warned investors not to count on another cut in December.

For buyers who feel secure in their financial situation, slowing price growth could present an opportunity. In September, housing inventory reached the highest level since 2019, according to a report released on Wednesday by analytics firm Cotality. While prices were up 1.2 per cent nationally from a year earlier, they dropped in 20 per cent of the 411 metropolitan areas measured, the largest share since June 2023, according to the firm. 

“Much like the K-shaped trend seen in overall consumer spending – driven largely by higher-income groups – lower-income potential homebuyers are facing challenges due to an uncertain job market, sluggish wage growth and worsening financial conditions,” said Selma Hepp, chief economist at Cotality. “This is leading to weaker demand for homes and downward pressure on prices.” BLOOMBERG