As economists predicted, the 30-year fixed rate fell again this week, moving closer to 6%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.09%, down from 6.13% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.17% to 5.14%. A year ago, it averaged 2.77%.
“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.
“According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan,…
As the average 30-year fixed-rate mortgage rate rose to 6.48% from 6.42% in the last week of 2022, mortgage applications sunk to a 25-year low, according to officials at Freddie Mac. “Mortgage application activity sunk to a quarter-century low this week as high mortgage rates continue to weaken the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.” Khater continued, “Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market. Moreover, if rates continue…
Home sales plummeted by 35% in November but there are early signs that demand may be picking up. Redfin’s latest data found that home sales dropped 35.1% YOY in November on a seasonally-adjusted basis. High buying costs kept both buyers and sellers on the sidelines. “Rates have declined significantly over the past six weeks, which is helpful for potential homebuyers, but new data indicates homeowners are hesitant to list their homes,” Sam Khater, Freddie Mac’s Chief Economist, noted. “Many of those homeowners are carefully weighing their options as more than two-thirds of current homeowners have a fixed mortgage rate of below four percent.” Sellers have hesitated to put their homes on the market, knowing they’ll have to buy a new…
Mortgage interest rates softened last week after shooting above 7%, falling back to 6.95%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.95%, down from 7.08% the week prior. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates continue to hover around 7%, as the dynamics of a once-hot housing market have faded considerably,” said Sam Khater, Freddie Mac’s Chief Economist. “Unsure buyers navigating an unpredictable landscape keep demand declining while other potential buyers remain sidelined from an affordability standpoint. Yesterday’s interest rate hike by the Federal Reserve will certainly inject additional lead into the heels of the housing market.” The Federal Reserve approved another 75 BPS interest…
Mortgage rates exceeded 6% last week for the first time since 2008, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 6.02%, up from 5.89% last week. A year ago at this time, the 30-year FRM averaged 2.86%. “Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s Chief Economist. Inflation rose more than expected in August, up 8.3% YOY, though prices are down some from record highs earlier this year. Analysts had anticipated an 8.1% YOY increase. “Today’s evidence of a peak in US CPI might be welcome but the figure of 8.3% was…
By KIMBERLEY HAAS Consumers across the country continue to report difficult homebuying conditions due to inflation, higher mortgage rates, and home price appreciation. Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, says that in April their Home Purchase Sentiment Index fell to its lowest level since the spring of 2020. The percentage of respondents who said it is a good time to buy a home decreased from 24% to 19%, while the percentage who said it is a bad time to buy increased from 73% to 76%. As a result, the net share of those who say it is a good time to buy decreased 8 percentage points month over month, according to the survey. “The current lack…
Mortgage rates shot back up after a one-week reversal of their upward trend, averaging 5.29% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.29%, up from 5% last week. A year ago at this time, the 30-year FRM averaged 2.96%. “Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s Chief Economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.” Affordability dropped in Q1 2022, with monthly mortgage payments on the typical home rising to $1,383 (+30% YOY). Homeowners…
Selling a home in May, June, or July brings premiums of 10% or more above market value, according to a new analysis by ATTOM Data Solutions. ATTOM looked at home sales over the past eleven years to determine the best month to sell a home. It found that spring and summer are the most popular times for homebuying, giving sellers the best opportunity to make money on their homes. “April showers may bring May flowers, but May brings home sellers the best opportunities to watch their profits grow,” said Rick Sharga, Executive Vice President of Market Intelligence at ATTOM. “Homeowners looking to maximize the price premium they can claim on their homes should sell their properties in May, June, and…
Mortgage rates declined for the first time after a weeks-long upward streak, averaging 5% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%, down from 5.11% last week. A year ago at this time, the 30-year FRM averaged 2.98%. “The combination of swift home price growth and the fastest mortgage rate increase in over forty years is finally affecting purchase demand,” said Sam Khater, Freddie Mac’s Chief Economist. “Homebuyers navigating the current environment are coping in a variety of ways, including switching to adjustable-rate mortgages, moving away from expensive coastal cities, and looking to more affordable suburbs. We expect the decline in demand to soften home price growth…
Mortgage rates averaged 5.11% last week, up from 5%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.11%. A year ago at this time, the 30-year FRM averaged 2.97%. “Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.” Mortgage rates have grown from 3.51% at the beginning of March while home prices remain elevated. The combo has…
