Mortgage rates continue to come down
Average long-term mortgage rate fell to 6.69% this week
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The average long-term U.S. mortgage rate fell again this week but remained high compared to earlier in the spring home-buying season, according to weekly data compiled by mortgage buyer Freddie Mac.
The rate on the 30-year fixed mortgage fell to 6.69% this week from 6.71% a week ago. One year ago, it averaged 5.78%.
"Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve," said Sam Khater, Freddie Mac’s chief economist.
Among the roughly 63% of U.S. homes with a mortgage, average homeowner equity per borrower was $274,070 in the first quarter of 2023, down 1.9% from the same quarter last year, according to real estate data tracker CoreLogic. (AP Photo/Gene J. Puskar
Khater continued, "As inflation continues to decelerate, economic growth is slowing and the tightening cycle of monetary policy is reaching its apex, which means mortgage rates are expected to decrease later this year and into next."
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In addition, the average rate on a 15-year fixed mortgage rose to 6.10% this week from 6.07% a week ago. At this time last year, the 15-year fixed-rate mortgage averaged 4.81%.
Homebuyers are facing a worsening affordability situation with mortgage rates hovering around the highest levels in more than a decade. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
The Federal Reserve indicated it will likely raise rates two more times this year, quashing any optimism that a terminal rate had been reached.
COMMERCIAL REAL ESTATE CRASH STILL LOOMING OVER US ECONOMY
The Fed rate hiking cycle has increased the cost of borrowing in an attempt to reduce the velocity of money and slow the economy.
Despite spring and summer being the peak home-buying season, home sales have been far below the historical figures as the market remains tight. (Fox News)
Federal Reserve Chairman Jerome Powell's announcement Wednesday of future interest rate hikes came as a blow to homebuyers who will continue to fight an uphill bad in the coming months.
Despite spring and summer being the peak home-buying season, home sales have been far below the historical figures as the market remains tight.