For the real estate industry, the news about mortgage rates gets better and better. Freddie Mac reports the average 30-year fixed-rate mortgage rate remains at 6.49 percent, the lowest it has been in over a year.
“While rates increased slightly this week, they remain more than half a percent lower than the same time last year,” said Sam Khater, Freddie Mac’s chief economist.
Khater notes that last year, the 30-year fixed-rate mortgage nearly hit 8%, slamming the brakes on the housing market. Now, the 30-year fixed-rate hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow.
“Lower rates are good news for potential buyers and sellers alike,” Khater added.
That’s because there are some current homeowners who would like to move but don’t want to give up a low interest rate for a higher one. As rates slowly drift lower selling and moving looks like a more realistic option.
Some buyers are already taking advantage of lower rates. The Mortgage Bankers Association reports the Unadjusted Purchase Index, tracking purchase applications, increased 3% from the previous week.
