Name: Mortgage Rates Hit Highest Level in Over 5 Months
Uploaded: 2024-12-27T22:44:46.000Z
Description: Mortgage rates have shot back up after declining earlier this month following the Federal Reserve’s change to a slower, more cautious approach to interest rate cuts next year.

Stefania Cox is an NTD News anchor and national correspondent based at the network's global headquarters in New York City. Stefania anchors "NTD Newsroom," and co-anchors "NTD News Today" weekdays at 10:00 am ET.

Stefania Cox

Cary Dunst is the news anchor for NTD Evening News. He is also the co-host of NTD Good Morning.


Cary Dunst

NTD Plus

News

We present news that is truthful and based on facts, outside of the political fog. Instead of focusing on the negative things happening around us, our mission is to give our viewers a good morning with empathetic and uplifting stories. Our aim is to provide an antidote to negativity by shining a light on the best side of people. We speak to inspiring people who positively impact communities, pursue topics that represent our common human values, and will never miss an opportunity to bring you heartwarming stories.

NTD Good Morning

Smart Spending: How to Save on Summer Travel

UAE Suffered More Iranian Missiles Than Israel, Paving Way for Iron Dome: Analyst

NTD Newsroom comprises teams of reporters, editors, and producers assigned to cover breaking news and other stories.


NTD Newsroom

Washington Event to Rededicate US as ‘One Nation Under God’

Best-Selling Author Concerned Christians May Be Next in China’s State-Sanctioned Organ Trade

Jason Perry is an Army veteran and NTD's National Security Correspondent based at the network's global headquarters in New York City. Jason primarily covers border security, national defense, foreign wars, and veterans' issues.

Jason Perry

Pentagon Paves the Way to Buy 10,000 Containerized Missiles

US Reports No Hantavirus Cases From Cruise Outbreak

Juliette Fairley is a freelance reporter for NTD and The Epoch Times and a graduate of Columbia University’s Graduate School of Journalism. Born in Chateauroux, France, and raised outside of Lackland Air Force Base in Texas, Juliette is a well-adjusted military brat. She has written for many publications across the country. Send Juliette story ideas at JulietteFairley@gmail.com

Juliette Fairley

Daniel Monaghan is a reporter for NTD News covering culture, social issues, and education. He holds a BA in Political Science and Government.

Daniel Monaghan

US News

Politics

Executive Branch

Rubio: China is ‘Top Geopolitical Challenge’

The Associated Press is an American not-for-profit news agency headquartered in New York City. 

The Associated Press

Jury Awards $49.5 Million to Family of Woman Killed in 2019 Boeing Max Crash

Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."

Andrew Moran

China News

Trump Departs China After 2-Day Talks With Xi

Haika Mrema

Medical Plane Crash in New Mexico Mountains Kills 4, Sparks Wildfire

Accommodating, Enabling China’s Regime a Failed Strategy: China Expert

NTD Good Morning Full Broadcast (May 15)

NTD Good Morning Full Broadcast (May 14)

Kevin Hogan is an NTD News data reporter and national correspondent based at the network's global headquarters in New York City. Kevin covers breaking news, as well as U.S. and global current events. He conveys the news through data visualizations and investigates pressing issues.

Kevin Hogan

NTD Good Morning Full Broadcast (May 13)

NTD Good Morning Full Broadcast (May 12)

President Trump Leaves for China Today; Calif. Mayor to Plead Guilty to Acting as CCP Agent | NTD Good Morning (May 12)

NTD Good Morning Full Broadcast (May 8)

NTD Good Morning Full Broadcast (May 7)

NTD Good Morning Full Broadcast (May 6)

NTD Good Morning Full Broadcast (May 5)

Fast, compelling, first-hand news from China. China in Focus airs Monday–Friday at 8 p.m. ET.

China in Focus

China Sends Warships to Pacific Drill as Tensions With Japan Rise

Reuters is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages.

Reuters

2 US Embassy Personnel Assigned to Cartel Case Killed in Car Accident

Gunman Kills 8 Children, Including 7 of His Own, in Louisiana Mass Shooting

Flora Hua is a reporter based at NTD's global headquarters in New York City, where she covers China news, U.S.-China relations, and human rights issues. Flora primarily contributes to NTD's "China in Focus."  

Flora Hua

Trump: Seized Iranian Ship May Have ‘A Gift From China’

Joseph Lord is a congressional reporter for The Epoch Times.


Joseph Lord

Aldgra Fredly is a freelance writer covering U.S. and Asia Pacific news for The Epoch Times.

Aldgra Fredly

Former NYC Mayor Rudy Giuliani Hospitalized in Critical Condition: Spokesman

Wildfires Across Georgia and Florida Have Destroyed Nearly 50 Homes and Are Forcing Evacuations

News you can trust from the U.S. and around the world. Critical information and insight. We cover the stories that others don’t. NTD News Today airs Monday–Friday at 11 a.m. ET.

NTD News Today

US Warns of China Hacks via Routers, Smart Devices

Juliet Song is an international correspondent exclusively covering China news for NTD. She primarily contributes to NTD's "China in Focus," covering U.S.-China relations, the Chinese regime's human rights abuses, and domestic unrest inside China.

Juliet Song

2 Americans Among Suspected Communist Rebels Killed in Clashes With Troops, Philippine Officials Say

Ryan Morgan is a reporter for The Epoch Times focusing on military and foreign affairs. He was previously a news writer for NTD. 


Ryan Morgan

Mari Otsu is NTD's White House correspondent based in Washington. 

Mari Otsu

World News

Middle East

Iran

3 US Warships Fend Off Iranian Attacks, Trump Says Ceasefire Still Holds

Health News

3 Dead in Suspected Hantavirus Outbreak on Cruise Ship in Atlantic Ocean: WHO

Mortgage rates have shot back up after declining earlier this month following the Federal Reserve’s change to a slower, more cautious approach to interest rate cuts next year.

The average weekly rate on a 30-year fixed-rate mortgage was 6.85 percent for the week ending Dec. 25, the highest it’s been since the week ending July 10, according to <a href="https://www.freddiemac.com/pmms">data</a> from Freddie Mac. After hitting a low of 6.6 percent for the week ending Dec. 11, the mortgage rate reversed course and has since been on an uptick.

The recent jump came after the Federal Reserve <a href="https://www.theepochtimes.com/real-estate/multi-family-building-permits-up-22-percent-5780235">suggested</a> last week that the pace of rate reductions would slow down in 2025. The slower pace of cuts next year could result in interest rates remaining at an elevated level for longer than expected, contributing to higher mortgage rates.

Ten-year-treasury <a href="https://tradingeconomics.com/united-states/government-bond-yield">yields</a>, another influencing factor in the trajectory of mortgage rates, also increased after the Fed announcement.

The rise in mortgage rates for the most recent week was the second consecutive time that the rates increased, <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-continue-rise-2">said</a> Sam Khater, Freddie Mac’s chief economist.

Mortgage rates have largely <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/heading-holidays-mortgage-rates-increase">stayed</a> within a range of 6 percent to 7 percent over the past 12 months, according to Khater. Even though elevated, prospective homebuyers are “slowly digesting these higher rates and are gradually willing to move forward with buying a home.”

Fannie Mae <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/housing-market-unlikely-thaw-2025-due-affordability-challenges-and-lock-effect">expects</a> mortgage rates to remain elevated next year along with “bouts of volatility.”

“Heightened mortgage rate volatility may present opportunities for would-be homebuyers to take advantage of temporary lows, and we may see stretches where housing activity is boosted by lower rates,” said Mark Palim, senior vice president of Fannie Mae.

However, “on average, we expect mortgage rates to remain elevated and a hindrance to activity,” he said, adding that rates are set to be above 6 percent in 2025.
<h2>Buying Demand and Affordability</h2>
Despite mortgage rates being high, there has been an increase in interest in buying homes, according to a recent <a href="https://investors.redfin.com/news-events/press-releases/detail/1233/redfin-reports-homebuying-demand-sitting-near-highest-level">report</a> by real estate brokerage Redfin.

Redfin’s Homebuyer Demand Index is up by 9 percent from a year back, hitting its highest level since August 2023. The brokerage suggested that mortgage rates could have “bottomed out.”

David Palmer, a Redfin Premier agent, attributed the higher demand to buyers having “accepted that rates in the six percent to seven percent range are the new normal, and they know that if they wait to buy, mortgage rates will probably stay the same but prices will be higher.”

According to the National Association of Home Builders (NAHB), higher mortgage rates <a href="https://www.nahb.org/news-and-economics/press-releases/2024/11/higher-mortgage-interest-rates-slow-housing-production-in-october">slowed</a> housing production in October.

NAHB Chief Economist Robert Dietz expects Fed rate cuts next year to “result in lower interest rates for construction and development loans, helping to lead to a stabilization for apartment construction and expansion for single-family home building.”

Amid high mortgage rates, housing affordability has worsened over the past years, according to <a href="https://www.nar.realtor/sites/default/files/2024-12/hai-10-2024-housing-affordability-index-2024-12-13.pdf">data</a> from the National Association of Realtors (NAR).

In 2021, a buyer had to pay nearly 17 percent of their income to afford a median-priced existing single-family home. This jumped to more than 24 percent in October this year. The monthly mortgage payment increased from $1,206 to $2,086.

In addition to mortgage rates, high home prices are also contributing to the affordability crisis facing buyers. In the third quarter, roughly 90 percent of 226 tracked metros registered price gains, according to an NAR <a href="https://www.nar.realtor/newsroom/almost-90-of-metro-areas-posted-home-price-increases-in-third-quarter-of-2024">report</a>.

“Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal. Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows,” said NAR chief economist Lawrence Yun.

“Housing affordability has been a challenge, but the worst appears to be over,” he said. “Rising wages are outpacing home price increases. Despite some short-term swings, mortgage rates are set to stabilize below last year’s levels. More inventory is reaching the market and providing additional options for consumers.”

<em>From <a href="https://www.theepochtimes.com/business/mortgage-rates-hit-highest-level-in-over-5-months-5782610?ea_src=frontpage&ea_cnt=a&ea_med=top-news-2-top-stories-0-title-0">The Epoch Times</a></em>

Latest

federal reserve

Business News

04_Top Stories

interest rate

mortgage

Management

Latest Clips

Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.


Naveen Athrappully

Latest and breaking news, documentaries, movies, and lifestyle content on NTD+.
 
Empower your knowledge and elevate your spirit with NTD+, your go-to destination for truthful news, insightful documentaries, and captivating lifestyle content that enriches your life.