US mortgage rates rise slightly to 6.66%: Freddie Mac

[NEW YORK] US mortgage rates rose for the first time in three weeks, further squeezing affordability as the housing market weakens.

The average for a 30-year, fixed loan increased slightly to 6.66 per cent from 6.65 per cent a week earlier, Freddie Mac said in a statement on Thursday (Aug 27). The rate was 6.56 per cent a year ago.

The property market has been in the doldrums this year as borrowing rates remain elevated amid tariffs and inflation fears sparked by the war in Iran.

Rates briefly dipped below 6 per cent before the Middle East hostilities started in late February but have remained above 6.5 per cent since July.

And despite the Trump administration’s latest efforts, financing costs show little sign of retreating. 

“The market remains jammed by high rates,” said Thomas Ryan, senior North America economist for Capital Economics. “If rates eventually fall towards, say, 5 per cent, there could be a meaningful release of pent-up demand. It’s just not clear what will drive rates that low in the near term.”

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New US single-family home sales slide in July

Asean Intelligence

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New-home sales declined in July to a six-month low, a sign that higher mortgage rates are curbing demand.

Contract signings on new single-family homes fell 10.5 per cent last month to a 607,000 annual rate, according to government figures released on Tuesday. Economists surveyed by Bloomberg had expected 620,000, based on the median estimate. BLOOMBERG