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After falling slightly last week, mortgage rates have risen again and remain in the mid-6% range.
Although interest rates have fallen by about 1 percentage point since October, home prices continue to rise while still well above pandemic-era rates, adding to a persistent affordability crisis in the housing market. There is.
A “For Sale” sign posted in front of the house. August 22, 2023, San Mateo County, California. (Liu Guanguan/China News Service/VCG via Getty Images / Getty Images)
Freddie Mac's latest primary mortgage market study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage climbed to 6.69% This week's rate has increased from 6.60% last week. The average yield on popular banknotes a year ago was 6.13%.
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The 15-year fixed mortgage rate also rose, jumping to 5.96% from 5.76% last week. A year ago, interest rates on 15-year term bonds averaged 5.17%..
Homes under construction in Sacramento, California, July 3, 2023. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Sam Cater, Freddie Mac's chief economist, said in a statement that stabilizing interest rates have caused some potential homebuyers to “jump off the fence and come back into the market.”
Carter added: “Despite persistent inventory issues, home prices are rising at a steady pace and we expect the spring home buying season to be busier than in 2023.”
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Although purchase activity has increased recently despite rising interest rates, the lack of existing homes on the market is expected to continue to hinder the real estate market this year.
Homes in Rocklin, CA December 6, 2022. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
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“While softening mortgage rates may encourage some buyers to re-enter the market, given that around two-thirds of mortgage balances currently have interest rates below 4%, A significant proportion of owners may choose to postpone their buying and selling plans and wait.'Before deciding on your next home, consider that even lower interest rates may apply.' said Jiayi Xu, economist at Realtor.com.
“As a result, we expect the housing market to remain weak in 2024, especially given that existing home sales prices in December 2023 are still rising.”
