Bill Pulte, CEO of Pulte Capital, said given rising mortgage rates, home prices will remain high until supply increases.
mortgage interest rate Home prices, which have been rising for the past month and a half, have barely budged this week while purchase demand remains stagnant in a stagnant housing market.
Freddie Mac's latest Primary Mortgage Market Study, released Thursday, found that the average benchmark interest rate 30 year fixed mortgage It fell to 6.78% from 6.79% last week. A year ago, the average interest rate on a 30-year loan was 7.44%.
A “For Sale” sign is posted in front of a home in Patchogue, New York on June 1, 2024. (Steve Forst/Newsday RM via Getty Images/Getty Images)
“After six weeks of increases, interest rates are flat, but overall affordability remains an issue for prospective homebuyers,” said Sam Cater, chief economist at Freddie Mac. “Our latest research shows that mortgage payments relative to rent for the same home are rising compared to most of the past 30 years.”
Many buyers and sellers are waiting to see if interest rates will fall further. According to Zillow research, about 80% of mortgage holders currently have interest rates below 5%.
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The average interest rate for 15-year fixed mortgages also fell slightly to 5.99% from 6% last week. A year ago, interest rates on 15-year fixed bonds averaged 6.76%.
