Seeing their fourth week of declines, the 30-year fixed-rate mortgage (FRM) averaged 7.29% last week, down from the week previous’ dip to 7.44%, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Wednesday, Nov. 22. Last week’s results include an adjustment for the observance of Thanksgiving.

• The 30-year FRM averaged 7.29% as of November 22, 2023, down from last week when it averaged 7.44%. A year ago at this time, the 30-year FRM averaged 6.58%.
• The 15-year FRM averaged 6.67%, down from last week when it averaged 6.76%. A year ago at this time, the 15-year FRM averaged 5.9%

“Mortgage rates continued to decrease heading into the Thanksgiving holiday,” said Sam Khater, Freddie Mac’s chief economist. “In recent weeks, rates have dropped by half a percent, but potential homebuyers continue to hold out for lower rates and more inventory. This dynamic is reflected in the latest data showing that existing home sales have fallen to a thirteen-year low.”

Danielle Hale, chief economist for Realtor.com, commented: 

“The Freddie Mac fixed rate for a 30-year mortgage eased further this week dipping another 15 basis points to 7.29%, as mixed data continue to keep investors guessing. Construction data showed surprising strength, especially in light of fading builder confidence as mortgage rates neared 8% in October, with both permits and starts ticking higher. Meanwhile, existing home sales slid to their worst reading since 2010 as home prices rose and mortgage rates pushed the cost of buying even higher. To combat higher costs, homebuyers have turned to more money upfront. According to a recent Realtor.com report, down payments rose to a peak in the third quarter of 14.7%. 

“In a few short weeks, mortgage rates have largely erased the sharp climb traversed in October. Nevertheless, the cost of borrowing remains high. Except for the most recent eight weeks, today’s rate is the highest since 2000. As a result, even after the move lower, today’s rates are unlikely to draw more than the most motivated buyers back into the market. If rates can hold onto this improvement, or notch a further decline, however, this could mean that ‘buying a home’ does seem like a viable new year’s resolution to a greater number of households.”

Source: Mortgage Rates Continue to Slide Down Last Week RisMedia (November 27, 2023) RisMedia Staff