Erin Sykes, chief economist at Nest Seekers International, weighs in on The Bottom Line as high interest rates continue to hurt the housing market.
Mortgage rates fell slightly this week but remained steady in the mid-6% range as demand in the housing market remains weak.
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 6.46% this week from 6.49% last week. The average rate on a 30-year mortgage was 7.23% a year ago.
A sign stands in front of a home for sale in San Rafael, California, on August 7, 2024. (Justin Sullivan/Getty Images/Getty Images)
“Mortgage rates have remained relatively stable over the past few weeks, but the soft economic data released will likely lead to a gradual decline in rates through the end of the year,” said Sam Carter, chief economist at Freddie Mac. “While rates fell sharply earlier this month and are now trading just below 6.5%, this is not enough to stimulate homebuyers. We believe rates would need to be cut another 1 percentage point to stimulate buyer demand.”
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The average interest rate on a 15-year fixed mortgage fell to 5.62% from 5.66% last week. A year ago, the average interest rate on a 15-year fixed loan was 6.55%.
