After falling for six weeks in a row, the 30-year fixed-rate mortgage averaged 6.27% as of December 22, down 4 basis points from the previous week, Realtor.com reports. Rate drops come at an especially pivotal time for the housing market in the midst of a nationwide price correction paired with a seasonal slowdown, but rather than listing their homes, existing homeowners are taking advantage of the dip in rates to refinance their mortgages.
The national median mortgage payment fell from $2,012 in October to $1,977 in November, and more reductions are expected in the year ahead.
“Rates have declined significantly over the past six weeks, which is helpful for potential homebuyers,” Sam Khater, chief economist at Freddie Mac, said in a statement.
But “new data indicates that homeowners are hesitant to list their homes,” he added.
“Many of those homeowners are carefully weighing their options as more than two-thirds of current homeowners have a fixed mortgage rate of below four percent,” Khater explained.
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