Mortgage rates continue downward trend, remain above 7%
DFW housing and macro econ analyst Amy Nixon discusses the future of the housing market on Making Money.
Mortgage rates fell again this week, continuing a downward trend that has sparked a recent uptick in demand and fueled hopes that more homeowners will be willing to sell amid an ongoing inventory shortage. Still, affordability struggles remain.
Freddie Mac reported Thursday that the average rate on the benchmark 30-year fixed mortgage fell for the fifth straight week to 7.22%, down from 7.29% last week. At this time a year ago, the 30-year note averaged 6.49%.
The average rate for a 15-year fixed mortgage also declined, dropping to 6.56% from 6.67% the week prior. The 15-year rate averaged 5.67% a year ago.
An «Open House» sign outside a home in Washington, D.C., on Sunday, Nov. 19, 2023. Mortgage rates have been on the decline, but many homeowners are still reluctant to sell. (Nathan Howard/Bloomberg via Getty Images / Getty Images)
«Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates,» said Sam Khater, Freddie Mac’s chief economist.
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«The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels,» Khater continued. «The modest uptick in demand over the last month signals that there will likely be more competition in a market that remains starved for inventory.»
The Mortgage Bankers Association (MBA) reported Wednesday that mortgage applications have climbed for four straight weeks. The decline in rates helped to spur more housing demand,
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