Average Long-Term Mortgage Rates Climb, Ending 9-Week Slide

Average Long-Term , Mortgage Rates Climb, , Ending 9-Week Slide.
'The Independent' reports that
average long-term mortgage rates in
the United States edged higher this week. .
On January 4, mortgage buyer Freddie Mac said that
average rates for a 30-year mortgage climbed to 6.62%,
ending a nine-week slide, offering buyers some relief. .
Average rates for 15-year fixed-rate mortgages fell
slightly over the same time, bringing the average
rate down to 5.89% from 5.93% last week. .
At the same time in 2023,
30-year mortgages were at 6.48%,
and 15-year fixed-rates were at 5.73%. .
Mortgage rates hit 7.79% in late October,
a record high since late 2000.
'The Independent' reports that the Federal Reserve
has paused its rate-hiking campaign at its last
three meetings, offering financial markets a boost. .
Given the expectation of rate cuts
this year from the Federal Reserve,
as well as receding inflationary
pressures, we expect mortgage
rates will continue to drift
downward as the year unfolds, Sam Khater, Freddie Mac’s chief economist, via 'The Independent'.
Economists have predicted average rates
for 30-year mortgages to decline in 2024, however
forecasts have not seen rates falling below 6%.
While lower mortgage rates
are welcome news, potential
homebuyers are still dealing
with the dual challenges of
low inventory and high home
prices that continue to rise, Sam Khater, Freddie Mac’s chief economist, via 'The Independent'.
Home prices have continued to climb due to a persistently
low supply of available properties, leading sales of
previously-owned U.S. homes to slump 19.3% in 2023.