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…

Rates Fall 20 BPS To 7.03%

The 30-year fixed rate mortgage fell nearly 20 bps in one week, almost hitting 7%. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.03%, down from the week prior’s 7.22%. A year ago at this time, the 30-year FRM averaged 6.33%. It is now down nearly 80 bps in the last six weeks. The 15-year fixed rate fell to 6.29%% from 6.56%. A year ago, it averaged 5.67%. Mortgage applications overall increased by nearly 3% last week as refinances saw their biggest gains in two months thanks to cooling rates. But purchase demand reversed course, slipping slightly.  “When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last…

Rates Fall For Fifth Week, Down To 7.22%

Mortgage rates slipped for a fifth consecutive week, spurring a boost in purchase activity. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.22%, down from the week prior’s 7.29%. A year ago at this time, the 30-year FRM averaged 6.49%. The 15-year fixed rate fell to 6.56%% from 6.67%. A year ago, it averaged 5.76%. “Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates. The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels,” said Sam Khater, Freddie Mac’s Chief Economist. Purchase applications increased by 5% last…

Rates Slip For Third Week Straight

Mortgage rates slipped for a third consecutive week as Wall Street rallied around positive inflation data. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.44%, a modest decline from the week prior’s 7.5%. A year ago at this time, the 30-year FRM averaged 6.61%. The 15-year fixed rate fell from 6.81%% to 6.76%. A year ago, it averaged 5.98%. “For the third straight week, mortgage rates trended down, as new data indicates that inflationary pressures are receding,” said Sam Khater, Freddie Mac’s Chief Economist. “The combination of continued economic strength, lower inflation, and lower mortgage rates should likely bring more potential homebuyers into the market.” The consumer price index for October dipped by 0.1% month-over-month and…

Rates Soar To 23-Year High

Mortgage rates hit a more than two-decade high last week, exacerbating creeping financial troubles for many would-be buyers. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.31%, jumping from 7.19%. A year ago at this time, the 30-year FRM averaged 6.70%. The 15-year fixed-rate rose to 6.72% from 6.54%. A year ago, it averaged 5.96% “The 30-year fixed-rate mortgage has hit the highest level since the year 2000,” Sam Khater, Freddie Mac’s Chief Economist, said. “However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances.” Pending home sales tanked in August, reversing…

Rates Stay Above 7%

Mortgage rates stayed above 7% again last week. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.19%, up from 7.18%. A year ago at this time, the 30-year FRM averaged 6.29%. The 15-year fixed-rate rose to 6.54% from 6.51%. A year ago, it averaged 5.44% “Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist.  “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.” August’s inventory…

Mortgage Rates Increase Again Putting Pressure On Buyers

Mortgage rates increased slightly last week, inching up after falling the week prior. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.81%, up from 6.78%. A year ago at this time, the 30-year FRM averaged 5.30%. The 15-year fixed-rate mortgage also increased, up to 6.11% from 6.06%. A year ago, it averaged 4.58%. “Higher interest rates continue to dampen activity in interest rate-sensitive sectors, such as housing. However, overall U.S. consumer confidence is unwavering, surging to a two-year high in the Conference Board’s Consumer Confidence Index for July 2023,” said Sam Khater, Freddie Mac’s Chief Economist. “Rising consumer confidence often leads to greater spending, which could drive more consumers into the housing market.” Consumers believe that…

Rates Drop By 10+ BPS As Prices Surge

Mortgage rates retreated last week, dropping more than ten basis points in a one-week period. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.78%, down from 6.96% the week prior. A year ago at this time, the 30-year FRM averaged 5.54%. The 15-year fixed-rate mortgage reversed course as well, down a whopping 24 bps from 6.30% to 6.06%. A year ago, it averaged 4.75%. “As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Still, the ongoing shortage of previously owned homes for sale has been a detriment to homebuyers looking to take advantage of declining rates.” Existing-home sales saw their most sluggish levels in 14 years in June. At the…

Mortgage Rates Slip Again

Mortgage rates fell again, the third consecutive week of declines, but once again gave only an inch. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.67%, down from 6.69% the week prior. A year ago at this time, the 30-year FRM averaged 5.81%. The 15-year fixed-rate mortgage slipped as well, down from 6.10% to 6.03%. A year ago, it averaged 4.92%. “Mortgage rates slid down again this week but remain elevated compared to this time last year,” said Sam Khater, Freddie Mac’s Chief Economist.  “Potential homebuyers have been watching rates closely and are waiting to come off the sidelines. However, inventory challenges persist as the number of existing homes for sale remains very low. Though, a…