Mortgage rates have experienced a modest increase, rising from a two-year low observed last week. According to Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, the average rate on a 30-year fixed mortgage has ticked up to 6.12%, a slight increase from 6.08% the previous week. For context, the same rate stood at a significantly higher 7.49% last year.

Freddie Mac's chief economist, Sam Khater, commented on the current market conditions, stating, "The decline in mortgage rates has stalled due to a mix of escalating geopolitical tensions and a rebound in short-term rates that indicate the market's enthusiasm about potential rate cuts was premature." This suggests that external factors are playing a crucial role in shaping mortgage rate trends at this time.

Looking at the broader market, Khater pointed out that over the past year, mortgage rates have decreased by one and a half percentage points, while home price growth has slowed down. Additionally, inventory levels are on the rise, and incomes are steadily increasing. This combination of factors presents a more favorable landscape for homebuyers, particularly as we head into the fall season.

Interestingly, many potential buyers and sellers are adopting a wait-and-see approach, hopeful that mortgage rates might fall further. A Zillow survey revealed that approximately 80% of current mortgage holders have secured rates below 5%, making them hesitant to enter the market amid rising rates.

In another noteworthy development, the average rate for a 15-year fixed mortgage has also seen a slight uptick, now standing at 5.25%, compared to 5.16% the previous week. A year ago, the 15-year fixed rate was considerably higher, averaging 6.78%.

As the housing market continues to evolve, it remains essential for prospective homebuyers and sellers to stay informed about mortgage rate fluctuations and overall economic indicators. The current environment suggests opportunities for savvy buyers looking to navigate this dynamic landscape.

Stay tuned for further updates on mortgage rates and housing trends that could impact your buying or selling decisions!