U.S. mortgage rates inched upwards in the latest week, but are expected to fall through the rest of the year.
The 30-year fixed-rate mortgage rose slightly and averaged 6.62% as of January 4, according to data released by Freddie Mac
FMCC,
on Thursday.
It’s up 1 basis point from the previous week — one basis point is equal to one hundredth of a percentage point.
A year ago, the 30-year was averaging at 6.48%.
The average rate on the 15-year mortgage was 5.89%, down from 5.93% last week. The 15-year was at 5.73% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.7% as of Thursday afternoon.
What Freddie Mac said: “Given the expectation of rate cuts this year from the Federal Reserve, as well as receding inflationary pressures, we expect mortgage rates will continue to drift downward as the year unfolds,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“While lower mortgage rates are welcome news, potential homebuyers are still dealing with the dual challenges of low inventory and high home prices that continue to rise,” he added.
What are they saying? “While declining rates is a positive for homebuyers, the lack of inventory — both because of a deficit of new construction and because existing homeowners are remaining in the homes longer — will continue to be a challenge in 2024,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement.
Read the full article here
