Mortgage rates continue their downward trend, falling for the sixth week

The average long-term US mortgage rate fell for the sixth straight week, giving prospective homebuyers some relief after interest rates topped 7% last month.

30 years Fixed rate mortgage It averaged 6.27%, down from 6.31% last week, according to mortgage buyer Freddie Mac. A year ago, the 30-year average FRM was 3.05%.

The average 15-year fixed rate mortgage was 5.69% compared to last week when it averaged 5.54%. A year ago, the 15-year average FRM was 2.30%.

A “For Sale” sign stands in front of a home in Rochester, New York, Jan. 17, 2022. On Wednesday, the National Association of Realtors reports on existing home sales for November. (AP Photo/Ted Shaffrey/AP Images)

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“With the holidays approaching, mortgage rates have continued to fall,” said Sam Khater, chief economist at Freddie Mac. “Prices have fallen significantly over the past six weeks, which is helpful for potential homebuyers, but new data suggests that homeowners are reluctant to list their homes.”

“Many homeowners weigh their options carefully as more than two-thirds of current homeowners have a fixed mortgage rate of less than four percent,” Khater continued.

The housing market recession deepened in November as US previously occupied home sales slowed for the 10th consecutive month – the longest such period on records dating back to 1999.

The National Association of Realtors said Wednesday that existing home sales fell 7.7% last month from October to a seasonally adjusted annual rate of 4.09 million. That’s a slower rate of sales than economists expected, according to FactSet.

For sale sign outside the house

A for sale sign hangs in front of a home in Sacramento, California, Thursday, March 3, 2022. On Thursday, Freddie Mac reported average mortgage rates in the United States for the week. (AP Photo/Rich Pedroncelli/AP Images)

Rents rise in November, median prices accelerate above $2K again

Sales fell 35.4% compared to November last year. Barring a sharp decline in sales that occurred in May 2020 with the onset of the coronavirus pandemic, sales are now at the slowest annual pace since November 2010, when the housing market was mired in the wake of the foreclosure crisis of the late 2000s.

However, home prices continued to rise last month, albeit at a much lower rate than they did just a few months ago. The national median home sales price rose 3.5% in November from a year earlier, to $370,700.

The combination of high mortgage rates and rising prices continues to keep many first-time buyers on the sidelines. NAR said it accounted for 28% of sales last month, unchanged from October. By historical standards, first-time buyers typically make up 40% or more of transactions.

The Associated Press contributed to this article.

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