Housing market braces for an uptick as rates stabilize
The 30-year fixed-rate mortgage (FRM) has stabilized at an average of 6.69%, Freddie Mac reported Thursday.
This marks a slight increase from the previous week's average of 6.60%, yet it remains significantly lower than the highs experienced three months ago. The 30-year FRM averaged 6.13 % a year ago.
Freddie Mac’s latest survey findings also revealed an increase in the 15-year FRM, up from 5.76% to 5.96% week over week. This time last year, the 15-year FRM stood at 5.17%.
“The 30-year fixed rate has remained within a very narrow range over the last month, settling in at 6.69% this week,” Freddie Mac chief economist Sam Khater said in the report. “Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market. Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace.”
NerdWallet mortgage expert Holden Lewis attributes the rise in mortgage rates to improved consumer and investor confidence in the economy.
“[They] are feeling better about the economy, and the positive sentiment pushed mortgage rates higher,” Lewis said. “Most forecasters predict that mortgage rates will fall this year, but there will be up weeks and down weeks along the way. Rates are lower than just three months ago, and would-be buyers are already shopping for homes, getting a jump on the heightened competition that will arrive with spring.”
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