Mortgage rates barely budged this week, with the average rate for a 30-year dipping slightly to 6.74%, down from 6.75% 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 6.78%.
The 30-year has basically been stuck in a narrow range between 6.6% and 6.9% for over a year now, and while the stability is welcome, the housing market is stalled. However, the impact of higher rates is being partially offset by a strong labor market and relatively healthy economy.
“This week, the 30-year fixed-rate mortgage essentially remained flat at 6.74 percent,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Overall, the backdrop for the housing market is positive as the economy continues to perform well with solid employment and income growth.”
The average rate for a 15-year fixed-rate mortgage was 5.87%, down from 5.92% last week and down from a year ago when it was 6.07%.
“While the movement is modest, it’s another sign of continued rate stability as we move deeper into the summer,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “Even small improvements like these can help maintain momentum in what’s been a cautious housing market.”
“Rates are being supported by steady demand in the bond market, driven in part by ongoing global economic uncertainty and shifting expectations around future Fed policy,” Dedhia says. “With Treasury yields holding relatively steady, mortgage-backed securities have remained stable as well, helping to prevent any sharp increases in borrowing costs.”
“At the same time, affordability challenges remain as home prices reach record highs,” Dedhia adds. “However, we’re seeing that even slight rate improvements are having an impact. Purchase and refinance activity continue to show signs of life, especially among buyers who are closely watching for any window of opportunity. In this kind of market, small moves can make a big difference.”
Photo: Sarah Brown