Rates Unchanged At 6.95%

Mortgage rates stayed basically flat last week, hovering under 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.95%, down from the week prior’s 6.96%.
A year ago at this time, the 30-year fixed-rate mortgage averaged 6.63%.
Fifteen-year rates also decreased to 6.12% from 6.16%. A year ago at this time, they were at 5.94%.
“The 30-year fixed-rate has hovered between 6% and 7% for most of the last two and a half years. That trend continued this week, with the average rate remaining essentially flat at 6.95%,” said Sam Khater, Freddie Mac’s Chief Economist.
“Driven by these higher rates and a persistent supply shortage, affordability hurdles still exist for many homebuyers and a significant number of them remain on the sidelines.”
Pending sales reversed a four-month upward swing in December, falling across the country as rates edged over 7%.
Though inventory is correcting and home price appreciation is slowly cooling, most of the country is still experiencing extreme unaffordability.
As home prices and mortgage rates remain stubbornly high, first-time buyers hoping to hit the market in 2025 could benefit from down payment assistance programs.
“Get all the grants you deserve,” Deatra Kemp, an advocate for first-time home buyers in Milwaukee, said. “Don’t leave any money on the table.”