Mortgage rates fall again, but high home prices persist
DFW housing and macro econ analyst Amy Nixon discusses the future of the housing market on Making Money.
Mortgage rates continued their descent this week in a trend accompanied by an uptick in home-purchase demand, but elevated home prices remain a barrier to many would-be 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 7.03% this week, down from 7.22% last week but up from 6.33% a year ago.
A for sale sign is posted in front of a home for sale on Feb. 20, 2023 in San Francisco. Mortgage rates have been on the decline for several weeks, but home prices remain stubbornly high. (Justin Sullivan/Getty Images / Getty Images)
The rate for a 15-year fixed mortgage also declined, averaging 6.29% after coming in last week at 6.56%. One year ago, the rate on a 15-year fixed note averaged 5.67%.
THESE HOUSING MARKETS ARE EXPECTED TO SEE DOUBLE DIGIT SALES GROWTH IN 2024
Although mortgage applications have risen for five straight weeks, high mortgage rates have dampened consumer demand over the past year and severely limited inventory. That is because sellers who locked in a low mortgage rate before the pandemic have been reluctant to sell with rates continuing to hover near a two-decade high, leaving few options for eager would-be buyers.
Homes in Rocklin, California, on Tuesday, Dec. 6, 2022. Many would-be sellers are opting to stay put as interest rates and home prices remain elevated. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
As low inventory persists, home prices remain high, rising for the eighth straight month in September according to the latest S&P CoreLogic Case-Shiller
Read more on foxbusiness.com
