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 6.13 per cent, down from 6.15 per cent last week. A year ago, the average was just 3.55 per cent.
Meanwhile, the 15-year fixed rate mortgage average was 5.17 per cent, down from last week when it averaged 5.28 per cent. A year ago, the 15-year FRM averaged 2.80 per cent.
Sam Khater, Freddie Mac’s chief economist said: “Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the months-long freeze that gripped the housing market.
“Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.”
Applications on the rise
A separate weekly survey from the Mortgage Bankers Association (MBA) also found the same trajectory for rates as well as applications.
The MBA reported that the interest rate for 30-year fixed rate mortgages fell to 6.22 per cent from 6.26 per cent, while the average rate for 15-year fixed rates mortgages also fell to 5.54 per cent from 5.98 per cent.
Applications were again up, jumping seven per cent from one week earlier.
Joel Kan, MBA’s vice president and deputy chief economist said: “Mortgage rates declined for the third straight week, which is good news for potential homebuyers looking ahead to the spring homebuying season.
“Overall applications increased with both gains in purchase and refinance activity, but purchase applications remained almost 39 percent lower than a year ago.
“Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market. Many have been waiting for affordability challenges to subside.”
