The 30-year fixed-rate mortgage (FRM) continued to decrease this week, from last week’s average of 6.88% to an average of 6.74% this week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Thursday.
This week’s numbers:
- The 30-year FRM averaged 6.74%, down from last week when it averaged 6.88%. A year ago at this time, the 30-year FRM averaged 6.6%.
- The 15-year FRM averaged 6.16%, down from last week when it averaged 6.22%. A year ago at this time, the 15-year FRM averaged 5.9%.
The takeaways:
“The 30-year fixed-rate mortgage decreased again this week, with declines totaling almost a quarter of a percent in two weeks’ time,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation. In this environment, there is a good possibility that rates will stay higher for a longer period of time.”
Realtor.com Senior Economic Research Analyst Hannah Jones commented:
“The Freddie Mac fixed rate for a 30-year mortgage fell 14 basis points to 6.74% this week as stronger-than-expected employment and inflation data kept rates relatively elevated. The market’s response to the inflation data pushed 10-year treasury yields slightly higher, and mortgage rates remained in the high 6% range. Consistent mortgage rate improvement is highly dependent on inflation data, which has climbed by 0.3% monthly for the last three months, off pace with the improvement necessary to see inflation reach the 2% target in the expected timeframe. The market overwhelmingly expects the Fed to hold interest rates steady at next week’s meeting and to hold off on cutting rates until the second half of the year.
“Today’s homebuyers are relatively optimistic about the path of mortgage rates. As the spring heats up, some buyers may hold off in the hopes that mortgage rates move lower, but either choice (buying now or waiting) comes with tradeoffs. Spring buyers may see higher mortgage rates, but summer buyers are likely to see higher home prices and uncertainty around mortgage rates. Buyers can utilize the Realtor.com mortgage calculator to evaluate how home prices and mortgage rates impact their budget.
“Today’s buyers are not only concerned about affording a home, but also about making a good investment. Based on a recent Realtor.com survey, more than three-quarters of today’s home shoppers consider the impact of climate change or natural disasters when looking at potential homes. More than 40% of homes in the US are vulnerable to at least one type of severe or extreme climate risk from either flood, wind, wildfire, heat or air quality. Buyers can now learn more about the climate-related risks to a property on Realtor.com.”
