There may be some hope for homebuyers yet. Mortgage rates appear to be on a downward trend.
Freddie Mac reports mortgage rates fell for a third straight week, helped by easing inflation and less demand for mortgages. Housing starts and pending home sales have fallen over the last two months.
“These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Aspiring homeowners should remember it’s important to shop around for the best mortgage rate as they can vary widely between lenders.”
Latest rates
The 30-year fixed-rate mortgage (FRM) averaged 6.87% as of June 20, down from last week when it averaged 6.95%. A year ago at this time, the 30-year FRM averaged 6.67%.
The 15-year FRM averaged 6.13%, down from last week when it averaged 6.17%. A year ago at this time, the 15-year FRM averaged 6.03%.
Meanwhile, Freddie Mac has proposed adding a product that would allow homeowners to tap equity in their homes without giving up their low mortgage rates. Essentially a second mortgage, the proposed new loan would provide a fixed rate.
According to the Urban Institute, the loan could potentially be a cost-effective alternative to cash-out refinances at today's higher rates.