RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Mortgage Rates Continue Downward Trend

Home Agents
By RISMedia Staff
February 2, 2023
Reading Time: 3 mins read
Mortgage Rates Continue Downward Trend

The 30-year fixed-rate mortgage (FRM) edged down again this week, averaging 6.09%, down from 6.13% the previous week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Thursday. The news follows the more modest 25-basis-point interest rate hike announced by the Federal Reserve Wednesday afternoon–which experts say signals that the central bank is growing more confident in the battle against inflation.

Taking a look at this week’s numbers: 

  • 30-year fixed-rate mortgage averaged 6.09% as of February 2, 2023, down from last week when it averaged 6.13%. A year ago at this time, the 30-year FRM averaged 3.55%.
  • 15-year fixed-rate mortgage averaged 5.14%, down from last week when it averaged 5.17%. A year ago at this time, the 15-year FRM averaged 2.77%.

What the experts are saying:

“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s chief economist. “According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price.”

Realtor.com manager of economic research, George Ratiu, commented:  

“The Freddie Mac fixed rate for a 30-year loan declined again from last week, to 6.09%, following the trajectory of the 10-year Treasury. With inflation pressures easing, mortgage originators have followed suit, lowering the cost of borrowing. At the same time, the Federal Reserve’s monetary tightening is pushing short-term borrowing costs higher. With the Fed’s policy rate underpinning the prime rate, a host of credit products are seeing higher rates, including credit cards, auto loans and adjustable-rate mortgages. In effect, the Fed’s actions are keeping a floor under mortgage rates for the short term. I expect rates to stay around 6% for the next few weeks.

“As we move through the year, incoming economic data will play a role in the trajectory of interest rates. Most recent indicators point to a still-resilient economy. This week’s report on job openings and quits underscored that fact, showing that companies have 11 million unfilled positions, and more than 4 million workers left their employer for better opportunities. Moreover, initial jobless claims dipped below the 200,000 threshold for the past two weeks.

“For housing markets, lower rates have eased the financial burden on homebuyers. In addition, January’s housing market data showed a growing number of homes for sale, properties lingering longer on the market, and prices down 11% from their 2022 peak. For today’s buyer of a median-priced home, the down payment amount is lower than it would have been last summer. And at today’s rate, the monthly payment is $1,937, about $10 lower than the first week in June 2022, when the interest rate was a percentage point lower. While that is positive news, affordability remains a primary challenge, especially for first-time buyers.”

Tags: Freddie MacHousing Markethousing recessionMLSNewsFeedMortgage IndustryMortgage RatesMortgagesPrimary Mortgage Market Survey
ShareTweetShare

RISMedia Staff

Related Posts

Best Practices

Thoughts on Leadership: Happy Real Estate New Year

October 4, 2023
The September 2023 Luxury Market Report
Industry News

The September 2023 Luxury Market Report

October 4, 2023
Navigating the Fall Real Estate Market: Tips for REALTORS®
Industry News

Navigating the Fall Real Estate Market: Tips for REALTORS®

October 4, 2023
Century 21 Continues Southern Expansion
Industry News

Century 21 Continues Southern Expansion

October 4, 2023
Mortgage Applications Continue Declining in Response to Ongoing Rate Hikes
Industry News

Mortgage Applications Continue Declining in Response to Ongoing Rate Hikes

October 4, 2023
NAR Profiles America’s Brokerages in New Report
Agents

NAR Profiles America’s Brokerages in New Report

October 4, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Helping Them Buy Their First Home is Just the Start

Increase your repeat business by mastering the second home and vacation property market. Learn how with the online Resort and Second Home Property Specialist (RSPS) certification course, 20% off through Oct 31. Click here.

Business Tip of the Day provided by

Recent Posts

  • Thoughts on Leadership: Happy Real Estate New Year
  • The September 2023 Luxury Market Report
  • Navigating the Fall Real Estate Market: Tips for REALTORS®

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

Join Premier for as low as $30!

Join Premier
logo-rismedia-white
x
X