According to Freddie Mac’s Primary Mortgage Market Survey released on Thursday, the average 30-year fixed-rate mortgage was 6.6% as of Jan. 11, a slight drop from the previous week when the rate averaged 6.66%, Fox Business reports. At this time a year ago, the rate for a 30-year fixed-rate mortgage averaged 6.15%.
"Mortgage rates decreased this week, reaching their lowest level since May of 2023," Freddie Mac Chief Economist Sam Khater said. "This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale."
While falling rates are a good sign for buyers, there’s still the chance they may not hold steady as the economy wobbles toward recovery. This can cause trouble for buyers trying to accurately budget for their home purchase.
Advertisement
Related Stories
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Housing Policy + Finance
Even With Inflation Running Hot and Elevated Mortgage Rates, Buyer Demand Rises
Mortgage rates will likely stay high for the next few months, but that doesn't seem to be deterring homebuyers
Financing
Q1 2024 Foreclosure Activity Rises Slightly
Data show New York, Houston, and Chicago topping the list of major metros with the greatest number of foreclosure starts during Q1 2024