Mortgage rates climb, adding to affordability woes
DeBianchi Real Estate President and Realtor Sam DeBianchi gives advice to millennials struggling to buy homes on ‘Making Money.’
Mortgage rates are up again after taking a slight dip last week, remaining in the mid-6% range.
Although rates have come down roughly a percentage point since October, they remain well above pandemic-era rates while home prices continue to climb, adding to the persistent affordability crisis in the housing market.
A «for sale» sign hangs in front of a home Aug. 22, 2023, in San Mateo County, Calif. ( Liu Guanguan/China News Service/VCG via Getty Images / Getty Images)
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate for the benchmark 30-year fixed mortgage climbed to6.69% this week, an increase from 6.60% last week. The popular note averaged 6.13% a year ago.
RENTS SLIPPED IN DECEMBER BUT ARE STILL WAY ABOVE PRE-PANDEMIC LEVELS
The rate on a 15-year fixed mortgage also increased, jumping to 5.96% after coming in last week at 5.76%. One year ago, the rate on the 15-year fixed note averaged 5.17%.
Homes under construction in Sacramento, Calif., July 3, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Sam Khater, Freddie Mac's chief economist, said in a statement that the stabilization of rates has caused some potential homebuyers to jump «off the fence back into the market.»
Khater added, «Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace.»
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There has been an increase in purchase activity recently despite higher
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