Mortgage rates continue downward trend, housing market still sluggish
Hovnanian Enterprises Chairman, CEO and President Ara Hovnanian reacts to rising homebuyer confidence due to declining mortgage rates on The Claman Countdown.
Mortgage rates ticked down again this week, continuing a series of declines since the end of October. The trend is beginning to spark signs of life in the stalled real estate market, but economists do not expect affordability to improve materially any time soon.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate for the benchmark 30-year fixed mortgage fell to6.67% this week, down from 6.95% last week but still higher than 6.27% a year ago.
Mortgage rates continued to march down this week, but the real estate market remains largely stagnant due to the affordability crisis. (Dustin Chambers/Bloomberg via Getty Images / Getty Images)
At the same time, the rate on the 15-year fixed mortgage fell, averaging 5.95% after coming in last week at 6.38%. One year ago, the rate on the 15-year fixed note averaged 5.69%.
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«Lower rates are bringing potential home buyers who were previously waiting on the sidelines back into the market and builders already are starting to feel the positive effects,» said Sam Khater, Freddie Mac’s chief economist. «A rise in home builder confidence, followed by new home construction reaching its highest level since May, signals a response to meet heightened demand as current inventory remains low.»
Data from the National Association of Realtors shows existing home sales ticked up by 0.8% in November after five months of declines, and the Commerce Department reported housing starts surged 14.8% last
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