Average Long-Term Mortgage Rates Climb, Ending 9-Week Slide

Average Long-Term , Mortgage Rates Climb, , Ending 9-Week Slide.

'The Independent' reports that average long-term mortgage rates in the United States edged higher this week.

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On January 4, mortgage buyer Freddie Mac said that average rates for a 30-year mortgage climbed to 6.62%, ending a nine-week slide, offering buyers some relief.

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Average rates for 15-year fixed-rate mortgages fell slightly over the same time, bringing the average rate down to 5.89% from 5.93% last week.

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At the same time in 2023, 30-year mortgages were at 6.48%, and 15-year fixed-rates were at 5.73%.

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Mortgage rates hit 7.79% in late October, a record high since late 2000.

'The Independent' reports that the Federal Reserve has paused its rate-hiking campaign at its last three meetings, offering financial markets a boost.

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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, Sam Khater, Freddie Mac’s chief economist, via 'The Independent'.

Economists have predicted average rates for 30-year mortgages to decline in 2024, however forecasts have not seen rates falling below 6%.

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, Sam Khater, Freddie Mac’s chief economist, via 'The Independent'.

Home prices have continued to climb due to a persistently low supply of available properties, leading sales of previously-owned U.S. homes to slump 19.3% in 2023.