Mortgage rates have终于slipped below 7%, marking a brief decline after six weeks of increases. Freddie Mac’s latest Primary Mortgage Market Survey reveals that the average rate on benchmark 30-year fixed mortgages fell to 6.96%, down from 7.04% last week. This marks the first decline in rates since late December, with one year ago averaging 6.69%. Meanwhile, the average rate on a 15-year fixed mortgage dropped to 6.16%, down from 6.27% last week.
While affordability challenges persist, this slight drop is positive news for homebuyers. Sam Khater, Freddie Mac’s chief economist, notes that rates crossing below the 7%-mark last week was the biggest weekly drop in over a year. “This is welcome news for potential buyers,” he says, citing a rise in purchase applications as evidence of renewed interest despite ongoing affordability pressures.”
The decline in rates offers some relief to borrowers seeking more affordable options, though longer-term rates remain elevated compared to previous years. Overall, this signals a small step forward in the housing market amid persistent economic headwinds.
Source: https://www.foxbusiness.com/economy/mortgage-rates-january-23-2025