Erin Sykes, chief economist at Nest Seekers International, opines on “The Bottom Line” that high interest rates continue to hurt the housing market.
Mortgage rates plummeted to their lowest levels in more than a year this week, boosting demand in the housing market.
Freddie Mac’s latest primary mortgage market survey released Thursday showed that the average benchmark interest rate was 30-year fixed rate mortgage That’s down to 6.47% this week from 6.73% last week. The average rate on a 30-year mortgage was 6.96% a year ago.
“Mortgage rates plummeted to their lowest level in more than a year this week in an overreaction to unfavorable jobs data and financial market turmoil amid continuing strong economic conditions,” Freddie Mac chief economist Sam Carter said. “Lower mortgage rates will certainly increase purchasing power for prospective homebuyers and should begin to spur purchase sentiment.”
A “For Sale” sign hangs in front of a home in Miami on Feb. 22, 2023. (Joe Raedl/Getty Images/Getty Images)
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The average interest rate on a 15-year fixed mortgage fell to 5.63% from 5.99% last week. A year ago, the average interest rate on a 15-year fixed loan was 6.34%.
