Thursday, February 2, 2023
HomeMarketMortgage Rates Fall to 6.33% in Biggest 4-Week Decline Since 2008

Mortgage Rates Fall to 6.33% in Biggest 4-Week Decline Since 2008

High mortgage rates are keeping prospective home buyers on the sidelines.

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Joe Raedle/Getty Images

The average rate on a 30-year fixed-rate mortgage declined this week, leading to the largest four-week retreat in 14 years, according to
Freddie Mac.

The average rate on a 30-year fixed-rate mortgage was 6.33% as of Dec. 8, down from last week’s 6.49%. This is the fourth consecutive week of declines, and in that period, mortgage rates have slipped three quarters of a point, the largest since 2008.

Mortgage rates, however, remain high. The 30-year fixed rate mortgage averaged 3.1% this time last year.

“Mortgage rates decreased for the fourth consecutive week, due to increasing concerns over lackluster economic growth,” Sam Khater, Freddie Mac’s chief economist, said in a news release.

However, Khatar added that “while the decline in rates has been large, home buyer sentiment remains low with no major positive reaction in purchase demand to these lower rates.”

Bob Broeksmit, chief executive of the Mortgage Bankers Association, said in a separate statement that demand for purchasing a home has also declined.

“Despite the ongoing decline in mortgage rates that started in October, prospective home buyers continue to delay decisions to purchase homes, even as home prices flatten or fall,” Broeksmit wrote. “The average loan size for a purchase application last week was at its lowest level in nearly two years, another indication that home prices are cooling.”

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

Credit: marketwatch.com

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