Monday, February 6, 2023
HomeMarketMortgage Rates Fall for a Fifth Straight Week to 6.31%

Mortgage Rates Fall for a Fifth Straight Week to 6.31%

Home purchase demand is stabilizing but “remains very weak, said Freddie Mac’s chief economist.

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The average rate on a 30-year fixed-rate mortgage fell again this week, according to Freddie Mac.

The average rate on a 30-year fixed-rate mortgage was 6.31% as of Dec. 15, down from last week’s 6.33%. This is the fifth consecutive week that rates have fallen, and the lowest 30-year fixed rate since September.

“Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” Sam Khater, Freddie Mac’s chief economist, wrote Thursday. Inflation declined more than expected in November year over year to the lowest level since since December 2021.

On Wednesday, the Mortgage Bankers Association’s seasonally adjusted purchase index, which measures the volume of applications for home purchase loans, rose 4% from the previous week as buyers began to come back into the market.

“Mortgage applications for refinances and home purchases increased last week,” Bob Broeksmit, chief executive of the MBA, said in a statement. “… MBA expects the recent downward trend in mortgage rates to continue, which, along with moderating home prices, should encourage more homebuyers to return to the market in early 2023.”  

Khater added that while the decline in mortgage rates has caused purchase demand to stabilize, it “remains very weak in the face of affordability hurdles that are still quite high.”

The 30-year fixed rate mortgage averaged 3.1% this time last year.

Write to Angela Palumbo at angela.palumbo@dowjones.com

Credit: marketwatch.com

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