In its latest Primary Mortgage Market Survey, the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed that 30-year fixed rate mortgages averaged 7.5 per cent, down from last week when they were 7.76 per cent. A year ago, the average rate was 7.08 per cent.
Applications at lowest level since 1995
A separate weekly survey from the Mortgage Bankers Association (MBA) also revealed that a steep drop in rates but a spokesperson that availability was still keeping buyers ‘on the sidelines’.
The MBA reported that the average rate for 30-year fixed rate mortgages was 7.61 per cent, down from 7.86 per cent last week. The average rate for the 15-year equivalent fell to 6.98 per cent from 7.14 per cent last week.
Meanwhile, mortgage applications increased by 2.5 per cent from one week earlier.
Joel Kan, MBA’s vice president and deputy chief economist, said: “The 30-year fixed mortgage rate dropped by 25 basis points to 7.61 per cent, the largest single-week decline since July 2022.
“Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November Federal Open Market Committee statement, and data indicating a slower job market. Applications for both purchase and refinance loans were up over the week but remained at low levels.
“The purchase index is still more than 20 per cent behind last year’s pace, as many homebuyers remain on the sidelines until more for-sale inventory becomes available.”
