Though mortgage rates inched up this week, they remain below 6.5%, Freddie Mac reported Thursday. The 30-year fixed-rate mortgage averaged 6.43%, up from 6.39% last week. But “with the rate of inflation decelerating, rates should gently decline over the course of 2023,” says Sam Khater, Freddie Mac’s chief economist. “Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.”
The National Association of REALTORS® is predicting that the 30-year fixed-rate mortgage will fall to 6% by the end of the year and to 5.6% in 2024.
Buyers have shown sensitivity to movement in mortgage rates as they break their budgets to afford high home prices. But low inventory may prove an even bigger obstacle: The spring homebuying season is off to a slow start because buyers can’t find enough options, according to NAR data.
Freddie Mac reports the following national averages with mortgage rates for the week ending April 27:
- 30-year fixed-rate mortgages: averaged 6.43%, up from last week’s 6.39% average. Last year at this time, 30-year rates averaged 5.1%.
- 15-year fixed-rate mortgages: averaged 5.71%, dropping from last week’s 5.76% average. A year ago, 15-year rates averaged 4.4%.
Source: Realtor Magazine