According to a statement from Freddie Mac, the 30-year fixed mortgage rate reported the biggest decline in just one year. The 30-year fixed loan averaged 6.35%, down from 6.5% last week. Meanwhile, the average 15-year fixed mortgage rate is currently 5.55%.
Sam Khater, chief economist at Freddie Mac, said, “The 30-year fixed-rate mortgage has dropped by 15 basis points from last week. “Home buyers have noticed as mortgage rates are heading in the right direction, with purchase applications reaching the highest year-over-year growth rate in over four years.” Economic indicators of growing inflation are mixed with increasing unemployment claims and reduced financial yields, and could put interest rates in recent holding patterns.
According to data from Freddie Mac, the average 30-year fixed-rate mortgage (FRM) hit a record high of 2.65% on January 7, 2021, and a record high of 8.89% on December 16, 1994. Mortgage fees tracked 10-year financial yields this week, trading at the lowest level since April, causing a decline in mortgage rates. However, despite the dip, home buying appears to be stagnant, perhaps due to increased costs and weaker employment markets.
Even as mortgage fees drop, affordable profits could be limited, said Lisa Startevant, chief economist at bright MLS. as home prices continue to climb since spring. “We need to check both the lower mortgage fees for real affordable profits. She has seen a much lower price growth, or a lower home price, or even a lower home price. It has returned to the market, adding that reducing the mortgage rate of 6.5% to below 6.5% has “significant psychological effects” for buyers.
