Rates Dip Below 7%

Average mortgage rates dipped below 7% last week, giving buyers some breathing room as they navigate a high-priced housing market. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.94%, down from the week prior’s 7.02%. A year ago at this time, the 30-year FRM averaged 6.57%. The 15-year also fell, down from last week’s 6.24% to 6.38%. A year ago at this time it was 5.97%. “Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the 7% threshold for the first time in over a month,” said Sam Khater, Freddie Mac’s Chief Economist. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing…

Rates Cool For Second Week

Average mortgage rates declined for a second week as inflation moderated in the Fed’s preferred inflation indicator. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.02%, down from the week prior’s 7.09%. A year ago at this time, the 30-year FRM averaged 6.39%. The 15-year also fell, down from last week’s 6.38% to 6.28%. A year ago at this time it was 5.75%. “Mortgage rates decreased for the second consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.” Even a…

Rates March Toward 7% On Sticky Inflation Data

Mortgage rates are marching towards 7% again as inflationary pressures threaten their stability. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.88%, up from the week prior’s 6.82%. A year ago at this time, the 30-year FRM averaged 6.27%. The 15-year fixed rate increased from 6.06% to 6.16%. A year ago, it averaged 5.54%.  Rates have primarily stuck between 6.5% and sub-7% as they moved up in the first quarter. Freddie Mac Chief Economist Sam Khater noted that rates moved up as inflation stayed sticky and the Central Bank’s monetary policy shifted. “While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different…

Mortgage Rates Move Up Just Barely

Mortgage rates were basically stagnant last week, staying put in the upper-6% range yet again. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.82%, up just slightly from the week prior’s 6.79%. A year ago at this time, the 30-year FRM averaged 6.28%. The 15-year fixed rate also fell from 6.11% to 6.06%. A year ago, it averaged 5.64%.  This week’s data reinforces that rates have stabilized in the 6%’s for the moment. “Since the start of 2024, the 30-year fixed-rate mortgage has not reached 7% but has not dropped below 6.6% either,” said Sam Khater, Freddie Mac’s Chief Economist. “While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease…

Rates Cool Down, Increasing Demand

Mortgage rates broke a month-long upward streak, deflating for the first time in weeks and resulting in a purchase demand boost. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.88%, down from the week prior’s 6.94%. A year ago at this time, the 30-year FRM averaged 6.73%. This is the first decline in four weeks. The 15-year fixed also fell, dropping to 6.22% from 6.26%. A year ago, it averaged 5.95%. “Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s Chief Economist.  Mortgage loan applications were up nearly 10% from…

Mortgage Rates Decline, Reversing One-Week Uptick

Mortgage rates reversed a one-time uptick and fell last week, giving potential buyers even more breathing room. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.63%, down from the week prior’s 6.69%. A year ago at this time, the 30-year FRM averaged 6.09%. Rates have now been largely stable, within the mid-6’s, for almost two months. The 15-year fixed also decreased to 5.94% from 5.96%. A year ago, it averaged 5.14%. “Although affordability continues to impact homeownership, the combination of a solid economy, strong demographics, and lower mortgage rates are setting the stage for a more robust housing market,” said Sam Khater, Freddie Mac’s Chief Economist. Khater noted that expected disinflation should push rates down further…

Predictions: Rate Cuts Unlikely This Week

By PATRICK LAVERY Seven weeks ago, the 2023 slate of policy meetings for the Federal Open Market Committee concluded with members voting to leave the key interest rate unchanged for a third straight time. However, anyone hoping that 2024 will begin with some movement in a downward direction is likely to be disappointed this week. Despite a seemingly positive economic outlook that has the stock market soaring to record highs, the experts seem to agree that there will be no change made when Federal Reserve Board Chairman Jerome Powell emerges from the FOMC meeting on Wednesday. The stability, so to speak, of the Fed’s policy interest rate has been mirrored somewhat in the housing market recently. According to Freddie Mac,…

December Pending Home Sales Saw Biggest Increase Since 2020

Pending home sales soared in December, proving that price-sensitive buyers are jumping at the opportunity to lock in sub-7% rates. NAR’s Pending Home Sales Index rose by 8.3% month-over-month — their biggest increase since 2020 — to a reading of 77.3 in December. An index of 100 is equal to the level of contract activity in 2001. Year-over-year, they are up 1.3%. “The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices,” said Lawrence Yun, NAR chief economist. “Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand.” All four U.S. regions saw declines both month-over-month…

Rates Fall To 6.60%

Mortgage rates have slipped to their lowest levels since May. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.60%, down from the week prior’s 6.66%. A year ago at this time, the 30-year FRM averaged 6.15%. The 15-year fixed fell to 5.76% from 5.87%. A year ago, it averaged 5.28%. “This is an encouraging development for the housing market and in particular for first-time homebuyers who are sensitive to changes in housing affordability,” said Sam Khater, Freddie Mac’s Chief Economist. “However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.” Rates are the primary concern of most potential buyers, but the market remains crippled by ongoing stock shortages…

Rates Remain Effectively Unchanged At 6.62%

Mortgage rates remained basically unchanged last week as markets adjust to economic expectations for 2024. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.62%, inching up from the week prior’s 6.61%. A year ago at this time, the 30-year FRM averaged 6.48%. This is the first increase since October. Rates have fallen more than a full percentage point since then, giving homebuyers more breathing room as they struggle against record-high unaffordability. The 15-year fixed rate dropped, however, from 5.93% to 5.89%. A year ago, it averaged 5.73%. Freddie Mac Chief Economist Sam Khater ascribed the news to the slow machinations of the market as it “digests incoming economic data.” He pointed out that rates stopped their…