Rates Slide To 6.15%

The 30-year fixed rate continued to slip last week, Freddie Mac reported Thursday.

Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.15%, down from 6.33% the week prior.

A year ago at this time, the 30-year FRM averaged 3.56 percent.

The 15-year fixed-rate mortgage fell from 5.52% to 5.28%. A year ago, it averaged 2.79%.

“As inflation continues to moderate, mortgage rates declined again this week,” said Sam Khater, Freddie Mac’s Chief Economist.

“Declining rates are providing a much-needed boost to the housing market, but the supply of homes remains a persistent concern.”

Housing construction slid in December to a five-month low. Residential starts fell 1.4% from November to an annualized rate of 1.38 million, while single-family permits dipped to their slowest pace since early 2020.

Existing-home sales have slipped for eleven straight months, down 1.5% from November to December and 34% YOY.

But buyers are beginning to re-enter the market, emboldened by retreating rates. Online home search and tour requests are seeing gains, according to data from Redfin.

“Although those house hunters haven’t yet turned into buyers, they may soon, given that monthly mortgage payments are notably down from their peak and the latest inflation and employment data lower the chances of a recession,” Redfin Deputy Chief Economist Taylor Marr said.

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