The latest Primary Mortgage Market Survey® (PMMS®), from Freddie Mac released Thursday shows the 30-year fixed-rate mortgage (FRM) averaging 6.49%, down from last week’s 6.58% (RISMedia did not report this data due to the Thanksgiving holiday closure). The Nov. 17 survey data we last reported, showed the average fixed-rate at 6.61%.
The numbers:
- 30-year fixed-rate mortgage averaged 6.49% as of December 1, 2022, down from last week when it averaged 6.58%. A year ago at this time, the 30-year FRM averaged 3.11%.
- 15-year fixed-rate mortgage averaged 5.76%, down from last week when it averaged 5.90%. A year ago at this time, the 15-year FRM averaged 2.39%.
Economists’ takes:
“Mortgage rates continued to drop this week as optimism grows around the prospect that the Federal Reserve will slow its pace of rate hikes,” said Sam Khater, Freddie Mac’s chief economist. “Even as rates decrease and house prices soften, economic uncertainty continues to limit homebuyer demand as we enter the last month of the year.”
Realtor.com’s manager of economic research, George Ratiu, commented:
“The Freddie Mac fixed rate for a 30-year loan declined again this week, to 6.49%, as investors welcomed Jerome Powell’s remarks about a potential moderation in the pace of the Federal Reserve’s rate hikes as soon as the December meeting. The Fed is indicating that the aggressive rate hikes this year have been enough to start slowing inflation. Markets also welcomed today’s PCE price index—the Fed’s preferred inflation metric—which showed that growth is slowing.
“The retreat in mortgage rates from the 7.0% territory brings a measure of relief to homebuyers who watched their budgets shrink dramatically over the past year. At today’s rate, the buyer of a median-price home is looking at a $2,150 monthly payment—before taxes and insurance—an improvement from just a few weeks ago when that figure was about $2,300. Buyers have responded positively to lower rates, with mortgage applications ticking up.
“For real estate markets, mortgage rates compounded the relentless increase in prices over the past two-and-a-half years, pushing many buyers to the sidelines. The reprieve in the relentless surge is welcome news. However, financial pressures continue to make the path to homeownership an expensive one for many households. The outlook for 2023 calls for housing costs to remain elevated. The silver lining is that the inventory of homes for sale continues ramping up, even with sellers taking a step back from the market this fall. Buyers who are ready can expect more properties to choose from, and a better negotiating position.”
