After six straight weeks of increases, mortgage rates leveled off this week, rounding out a host of recent market-moving events including the election, a 25-basis point cut by the Fed and the first annual inflation increase in seven months.
The 30-year fixed-rate mortgage (FRM) averaged 6.78% this week, down from last week’s average of 6.79%, according to the latest Primary Mortgage Market Survey® (PMMS®) released by Freddie Mac Thursday.
“After a six-week climb, rates have leveled off, but overall affordability continues to be an issue for potential homebuyers,” said Sam Khater, Freddie Mac’s chief economist. “Our latest research shows that mortgage payments compared to rents on the same homes are elevated relative to most of the last three decades.”
This week’s numbers:
- The 30-year FRM averaged 6.78% as of November 14, 2024, down from last week when it averaged 6.79%. A year ago at this time, the 30-year FRM averaged 7.44%.
- The 15-year FRM averaged 5.99%, down from last week when it averaged 6.0%. A year ago at this time, the 15-year FRM averaged 6.76%.
“October’s moderate uptick in CPI could indicate a slower pace of monetary policy normalization, suggesting a potential rate pause in December instead of another cut,” commented Realtor.com Economist Jiayi Xu. “As longer-term rates have been quick to adjust to an improved economic outlook and the potential implications of the election results, for now, this means higher long-term rates than many initially expected, including for mortgage rates.”
Xu also pointed to some of the buyer-friendly market trends happening in the housing market. “(The market has) the highest inventory since December 2019, the slowest seasonal market in five years, and nearly 20% of listings offering price cuts,” she added.
