Century 21 Real Estate CEO Mike Miedler discusses the impact of mortgage rates on the housing market, claiming that affordability remains the biggest issue.
Mortgage buyer Freddie Mac said mortgage interest rates have fallen to their lowest levels for six consecutive weeks in more than two months.
Freddie Mac's latest primary mortgage market research, released Thursday, showed that the average rate for benchmark 30-year fixed mortgages was down to 6.76% from last week's 6.85% reading. The average rate for a 30-year loan was 6.94% a year ago.
“Combined with modest improvements in stock, lower mortgage rates are an inspirational sign for market consumers to buy a home,” said Sam Carter, chief economist at Freddie Mac.
Mortgage rates have fallen to their lowest levels for six consecutive weeks in more than two months. (via Steve Pfost/Newsday RM Getty Images)
Mortgage rates have fallen for five consecutive weeks, hovering near 7%
The average rate for fixed mortgages for 2015 fell to 5.94% from 6.04% last week. A year ago, the 15-year fixed note rate averaged 6.26%.
Pending home sales fall in January as they fall
Mortgage rates range from 6.91% to 7.04% in January, with the National Association of Realtors (NAR) saying monthly mortgage payments on $300,000 homes increased by an additional $50 to $1,590 compared to a year ago.
The “Sale” sign can be seen outside a recently purchased home in Washington. (Reuters/Sarasilviger/File Photo/Reuters Photo)
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NAR reported Thursday that pending home sales indexes fell to the lowest level on record in January due to high mortgage rates and high home prices. Pending home sales fell 5.2% compared to a year ago.
“It is unclear whether January of 25, the coldest month of 2015, contributed to a fewer buyers' contributions in the market. If so, we look forward to greater sales activities in the coming months,” said Lawrence Yun, chief economist at NAR. “But it is clear that rising home prices and rising mortgages are strained towards affordability.”
Eric Revell from Fox Business contributed to this report
