Average 30-year mortgage rate jumps to 6.32%, hurting homebuyers

Aspiring homebuyers on Long Island hoping mortgage rates would fall below 6% this fall will have longer to wait, as mortgage rates jumped higher this week.

The average 30-year fixed rate rose to 6.32% for the week ending Thursday, according to mortgage giant Freddie Mac, which publishes weekly data. A week ago, the average was 6.12%. 

This week's increase in the 30-year fixed average was the largest since April. Last year at this time the average rate was even higher at 7.57%. 

Mortgage rates had fallen steadily since July and were close to breaking lower than 6% two weeks ago. But last week's report that U.S. employers added 254,000 jobs in September, beating economists' expectations, pushed rates higher. 

"The rise in rates is largely due to shifts in expectations and not the underlying economy, which has been strong for most of the year," Sam Khater, Freddie Mac's chief economist, said in a statement. "Although higher rates make affordability more challenging, it shows the economic strength that should continue to support the recovery of the housing market."

The increase in rates is a setback for Long Island homebuyers who have been facing a shortage of listings, leading to competition for homes and record prices. 

The median price of a single-family home on Long Island in August was a record $835,000 in Nassau County and $680,000 in Suffolk County, according to the latest report from OneKey MLS.

Check back for updates on this developing story.

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.