Mortgage rates increased slightly this week, with the average rate for a 30-year fixed-rate mortgage rising to 6.62%, up from 6.61% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.48%.
“Between late October and mid-December, the 30-year fixed-rate mortgage plummeted more than a percentage point,” says Sam Khater, chief economist for Freddie Mac, in a statement.
“However, since then rates have moved sideways as the market digests incoming economic data. 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.
“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,” Khater adds.
The average rate for a 15-year fixed-rate mortgage was 5.89%, down from 5.93% last week.
A year ago, the average rate for a 15-year was 5.73%.
Photo: Bikram Sharma