There’s more encouraging news for homebuyers as 2024 draws to a close. Mortgage rates have continued to moderate.
Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage averages 6.69% this week.
“This week, mortgage rates decreased to their lowest level in over a month,” said Sam Khater, Freddie Mac’s chief economist.
“Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved. The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist.”
The 15-year FRM is even lower. It averages 5.96%, down from last week when it averaged 6.10%.
Joel Kan, vice president of the Mortgage Bankers Association, says the downward trend in rates is drawing buyers back to the housing market.
“The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year,” Kan said.
“The purchase index increased for the fourth straight week to its highest level since January 2024. Conventional refinance applications declined despite the lower rates, but FHA and VA refinancing rebounded from a week ago.”