Mortgage rates are continuing in a direction that favors consumers and is helping to drive the housing market, according to Freddie Mac. (iStock)
Mortgage rates fell again last week to the lowest level since September, creating more opportunities for home buyers, according to Freddie Mac.
The average rate for a 30-year fixed-rate mortgage fell to 6.15% for the week ending January 19, according to Freddie Mac’s First Mortgage Market Research. This is a discount from last week on average is 6.33% but remains higher than last year’s 3.56%.
The 15-year mortgage rate was 5.28% last week, down from a low of 5.52% the week before and a high of 2.79% a year ago.
The continued decline in mortgage rates is “increasing the demand of home buyers and home builders,” Freddie Mac Chief Economist Sam Khater said in a statement.
“As inflation continues to decelerate, mortgage rates have fallen again this week,” Khater said. “The reduction in prices is giving a big boost to the housing market, but the supply of housing remains a concern.”
If you are looking to take advantage of low mortgage rates by refinancing your loan or are ready to shop for the best rate on a mortgage loan, consider visiting an online mortgage broker like Credible to compare rates, choose your loan term and pre-approve multiple loans at once.
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Home supplies are back on track and back to pre-epidemic routines, according to Zillow. However, the improvement in the supply of housing can be attributed to unsold housing and not to an increase in inventory.
Some consumers affected by high mortgage rates have decided to stay out of the country rather than give up a low mortgage they already have. This creates a so-called “lock-in” effect, according to Fannie Mae.
However, the continued decline in mortgage rates may change this trend, Zillow said.
“The recent meltdown in mortgage rates has begun to attract renewed interest from buyers, and home sales are up again compared to last year,” Jeff said. Tucker, senior economist at Zillow, in a statement. “If prices continue to go down this spring and buyers return to the annual cycle, the housing market is likely to have a normal – perhaps unpleasant – year.”
If you are ready to shop for a mortgage loan or are considering refinancing your loan to take advantage of low mortgage rates, you can use the Credible marketplace to help you compare interest rates from multiple mortgages and get the first qualification in minutes.
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Another sign that the demand for housing is increasing is the increase in searches for homes for sale. according to Redfin.
Redfin’s Homebuyer Demand Index, which measures requests for tours and other services purchased from Redfin agents – increased 6% last month, the real estate company reported last week.
“Even if those house hunters have not yet become buyers, they may soon find that their monthly mortgage payments have fallen significantly from their highs and the latest price data and job statistics are reducing the chance of a recession,” said Deputy Chief Economist Taylor Marr at Redfin. a statement.
Mortgage applications have also rebounded as rates have dropped.
Mortgage application activity jumped 27.9% and refinancing rose 34% on a weekly basis, according to the Mortgage Bankers Association (MBA). weekly mortgage application survey for the week ending Jan. 13, 2023.
If you are ready to shop for a mortgage loan, you can use the Credible marketplace to compare rates with lenders and get a pre-approved mortgage in minutes.
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