Mortgage rates continued their downward trend, as the average 30-year mortgage rate decreased from 6.87% last week to 6.85% this week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac, released Thursday.
“The 30-year fixed-rate mortgage has stayed just under 7% for five consecutive weeks and in that time has fluctuated less than 20 basis points,” said Sam Khater, Freddie Mac’s chief economist. “This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season.”
This week’s stats:
- The 30-year FRM averaged 6.85%, down from last week when it averaged 6.87%. A year ago at this time, the 30-year FRM averaged 6.90%.
- The 15-year FRM averaged 6.04%, down from last week when it averaged 6.09%. A year ago at this time, the 15-year FRM averaged 6.29%.
Realtor.com Senior Economic Research Analyst Hannah Jones noted that inflation will “likely continue to hinder any significant mortgage rate progress,” which may continue to keep homebuyers on hold from any decisions, especially in terms of renters looking to become homeowners.
“Many markets have become more affordable for both buyers and renters over the last year, but it is still more affordable to rent than to buy a starter home in 48 of the 50 largest U.S. metros. The wealth-building potential and stability that homeownership provides may outweigh the additional costs for some home shoppers, especially as the market boasted the highest level of for-sale inventory in years in January,” she continued. “However, renters who feel ‘stuck’ need not worry, as they are in a strong position to leverage easing rents into building their savings. More affordable housing costs give renters the option to save up to buy in a more friendly market, or to choose an alternate approach to grow their wealth.”
