In its latest Primary Mortgage Market Survey, the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed that the 30-year fixed rate mortgage average was 6.15 per cent, down from 6.33 per cent last week. A year ago, the average was just 3.56 per cent.
Meanwhile, the 15-year fixed rate mortgage average was 5.28 per cent, down from last week when it averaged 5.52 per cent. A year ago, the 15-year FRM averaged 2.79 percent.
Sam Khater, Freddie Mac’s chief economist said: “Rates are at their lowest level since September of last year, boosting both homebuyer demand and homebuilder sentiment.
“Declining rates are providing a much-needed boost to the housing market, but the supply of homes remains a persistent concern.”
Mortgage applications rise
Meanwhile, a separate survey from the Mortgage Bankers Association (MBA) also found the same trajectory for rates and applications.
In its figures, the MBA noted that the interest rate for 30-year fixed rate mortgages fell to 6.26 per cent from 6.39 per cent, while the average rate for 15-year fixed rates mortgages also fell to 5.58 per cent from 5.94 per cent.
Applications were up, jumping 27.9 per cent from one week earlier.
Mike Fratantoni, MBA’s senior vice president and chief economist, said: “Mortgage application activity rebounded strongly, with both refinance and purchase activity increasing by double-digit percentages compared to last week, which included the New Year’s holiday observance.
“Despite these gains, refinance activity remains more than 80 per cent below last year’s pace and purchase volume remains 35 per cent below year-ago levels.”
He added: “Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”
