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- Mortgage rates fall for 2nd straight week, Freddie Mac says (foxbusiness.com)
Mortgage rates dip for second consecutive week, offering a glimmer of hope to homebuyers.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate for a 30-year fixed mortgage decreased to 6.76%, down from 6.81% last week. This marks the second consecutive week of declining rates, a welcome change from the 7.22% average seen a year ago. Sam Khater, Freddie Mac’s chief economist, noted that current 30-year rates have even dipped below the first-quarter average of 6.83%.
The 15-year fixed mortgage rate also saw a slight decrease, falling to 5.92% from 5.94% last week. This time last year, the 15-year rate averaged 6.47%.
While this offers a potential reprieve for prospective buyers, the housing market remains challenging. The combination of affordability issues and limited inventory continues to create obstacles, particularly for first-time homebuyers.
Experts point to the significant difference between current mortgage rates and the sub-5% rates held by the majority of current homeowners as a key factor contributing to the housing shortage. Homeowners are hesitant to sell and face higher financing costs with a new mortgage.
This reluctance to sell contributes to the ongoing housing supply gap, estimated to be 3.8 million homes. Despite the challenges, some industry analysts remain optimistic that economic conditions will eventually lead to a further easing of mortgage rates, potentially stimulating more activity in the housing market.
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- Mortgage rates fall for 2nd straight week, Freddie Mac says (foxbusiness.com)