Mortgage rates decline for second week, but no major drops expected soon
Payne Capital Management President Ryan Payne weighs in on the U.S. economy, arguing that purchasing power will continue to ‘strengthen’ for the American people.
Mortgage rates fell for the second week in a row, but economists are not expecting any significant declines in the near future.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate on the benchmark 30-year fixed mortgage dropped to 6.74% this week from 6.88% last week. The average rate on a 30-year loan was 6.60% a year ago.
An «Open House» flag is seen in front of a home for sale in Alhambra, California, on Jan. 18. (FREDERIC J. BROWN/AFP via Getty Images / Getty Images)
The average rate on the 15-year fixed mortgage also fell to 6.16% after coming in last week at 6.22%. One year ago, the rate on the 15-year fixed note averaged 5.90%.
WHAT $1M WILL FETCH YOU IN THE WORLD'S MOST EXPENSIVE REAL ESTATE MARKETS
«The 30-year fixed-rate mortgage decreased again this week, with declines totaling almost a quarter of a percent in two weeks’ time,» said Sam Khater, Freddie Mac’s chief economist. «Despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation. In this environment, there is a good possibility that rates will stay higher for a longer period of time.»
Low inventory continues to drive up home prices, leaving many would-be buyers unable to afford to purchase. (Nathan Howard/Bloomberg via Getty Images / Getty Images)
The drop in rates has boosted home-purchase applications leading into the typically bustling spring season, but demand remains well below where it was a year ago as elevated rates and record-high home prices continue to keep buyers and sellers out of
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