Mortgage rates dip below 7% amid climbing demand
DFW housing and macroeconomics analyst Amy Nixon discusses the future of the housing market on «Making Money.»
Mortgage rates have finally fallen below 7% for the first time in months and purchase applications are on the rise. Still, the low inventory of homes on the market is keeping home prices elevated, providing little comfort for prospective buyers.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate for the benchmark 30-year fixed-rate mortgage fell to 6.95% this week, down from 7.03% last week but up from 6.31% a year ago.
The average rate for the benchmark 30-year fixed-rate mortgage fell below 7% this week as the rate for a 15-year note increased to 6.38%. (Justin Sullivan / Getty Images)
At the same time, the rate for a 15-year fixed mortgage rose, averaging 6.38% after coming in last week at 6.29%. One year ago, the rate on a 15-year fixed note averaged 5.54%.
FED COULD CUT INTEREST RATES ‘EARLIER AND FASTER’ THAN EXPECTED, GOLDMAN SAYS
«Potential homebuyers received welcome news this week as mortgage rates dropped below seven percent for the first time since August,» said Sam Khater, Freddie Mac’s chief economist, in a statement. «Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year.»
A lack of inventory is keeping home prices elevated, keeping many would-be buyers priced out of the market. (David Paul Morris / Bloomberg / Getty Images)
The Mortgage Bankers Association reported Wednesday that mortgage applications have increased for six weeks straight as mortgage rates have continued
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