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Mortgage Rates Dip for Second Week, Offering Hope to Buyers
- Warren H. Lau
- 3 days ago
- 2 min read
US mortgage rates have experienced a decline for the second consecutive week, with the average 30-year fixed rate now standing at 6.18%. This downward trend, while welcomed by economists as a potential boon for aspiring homeowners, has yet to significantly stimulate buyer activity. Sellers, meanwhile, are holding back their listings, anticipating a more favorable market.
Key Takeaways
The average 30-year fixed mortgage rate has fallen to 6.18% from 6.21% last week.
Despite lower rates since September, buyer response has been subdued.
Sellers are delaying listing their properties, awaiting improved market conditions.
The 15-year fixed-rate mortgage saw a slight increase to 5.50%.
A Welcome Drop in Borrowing Costs
Freddie Mac's latest data indicates a continued decrease in mortgage rates, with the benchmark 30-year fixed rate dropping to 6.18% from 6.21% in the previous week. Sam Khater, Chief Economist at Freddie Mac, described the declining rates as a "timely and welcome gift for aspiring homebuyers."
Buyer Hesitation and Seller Strategy
Despite the encouraging movement in interest rates since September, the housing market has not seen a surge in buyer demand. This cautious approach from potential homeowners, coupled with sellers opting to wait for better market conditions before listing their properties, has created a complex environment. Real estate professionals are now looking towards the upcoming spring sales season, hoping that warmer weather will coincide with increased buyer engagement.
Rate Comparison
The 15-year fixed-rate mortgage, another popular option for homeowners, experienced a minor uptick, averaging 5.50% compared to 5.47% last week. For historical context, the 15-year rate was 6.00% a year ago, while the 30-year rate stood at 6.85% during the same period.
Freddie Mac's Primary Mortgage Market Survey specifically tracks conventional, conforming, fully amortizing home purchase loans for individuals with a 20% down payment and excellent credit.
Sources
US mortgage rates fall for second consecutive week By Investing.com, Investing.com.
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