Mortgage Rates Surpass 7% Amidst Economic Strength

Mortgage rates have climbed above 7% for the first time since May 2024, marking the fifth consecutive week of increases. According to Freddie Mac's latest Primary Mortgage Market Survey® (PMMS®), the average 30-year fixed-rate mortgage (FRM) reached 7.04%, up from 6.93% the previous week. 

Sam Khater, Freddie Mac’s Chief Economist, attributes this rise to the underlying strength of the economy, stating, "The underlying strength of the economy is contributing to this increase in rates." Despite the uptick, Khater emphasizes that consumers can still find savings by shopping around for multiple lender quotes. 

Realtor.com Chief Economist Danielle Hale anticipates that mortgage rates may stabilize in the latter half of January. She notes that upcoming events, such as the Federal Reserve's late-month meeting and early February labor data, could introduce market volatility. However, the market does not expect the Fed to make early moves in the year, increasing the possibility of rate stabilization. 

For prospective homebuyers and those looking to refinance, the current environment underscores the importance of staying informed and exploring various lending options to secure the most favorable terms.

**Sources**:  
- RISMedia. (January 16, 2025). *Mortgage Rates Climb Over 7%*. [Read more](https://www.rismedia.com/2025/01/16/mortgage-applications-climb-over-7-percent/).