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Mortgage rates continue to move in a favorable direction for buyers and are helping to jumpstart the housing market, according to Freddie Mac. (iStock)

Mortgage rates fell further last week to the lowest level since September, creating more opportunities for homebuyers, according to Freddie Mac.

The average rate for a 30-year fixed-rate mortgage fell to 6.15% in the week ended Jan. 19, according to Freddie Mac Prime Mortgage Market Research. This was down from the previous week, when it averaged 6.33%, but it remained significantly higher than last year, when it was 3.56%.

The average rate for a 15-year mortgage was 5.28% last week, down from 5.52% the week before and up from 2.79% last year.

The steady decline in mortgage rates is “boosting both buyer demand and builder sentiment,” Freddie Mac Chief Economist Sam Khater said in a statement.

“As inflation remains subdued, mortgage rates have dropped again this week,” Khater said. “Falling rates are providing a much-needed boost to the housing market, but home supply remains a persistent concern.”

If you want to take advantage of lower mortgage rates by refinancing your loan or are ready to shop around for the best rate on a mortgage loan, consider visiting an online mortgage broker like Credible to compare rates, choose your loan term, and get prepaid -Approval with several creditors at once.

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Home supply recovers, but not with inventory growth, says report

Housing supply has recovered and is mostly back to pre-pandemic seasonal norms, according to Zillow. However, the improvement in housing supply can be attributed to unsold homes rather than an increase in inventory.

Some sellers affected by higher mortgage rates have opted out rather than give up the historically low mortgage rates they already have. This created the so-called “lock-in” effect, according to Fannie Mae.

However, a continued drop in mortgage rates is likely to reverse that trend, Zillow said.

“The recent thaw in mortgage rates has begun to attract renewed interest from buyers, and home sales are rising again compared to last year,” Jeff Tucker, senior economist at Zillow, said in a statement. “If rates continue to fall this spring and sellers return with seasonal strength, the housing market could have a normal year – maybe even a boring one.”

If you’re ready to purchase a mortgage loan or are considering refinancing your loan to take advantage of lower mortgage rates, you can use the Credible marketplace to help you compare interest rates from multiple mortgage lenders and get pre-qualified. in minutes.

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More people are looking for homes for sale: report

Another indicator that home buying demand is increasing is an increase in searches for homes for sale, according to Redfin.

Redfin’s Home Buyer Demand Index, which measures requests for tours and other buying services from Redfin agents, increased 6% from the previous month, the real estate company said last week.

“While these house hunters haven’t yet become buyers, they might soon, given monthly mortgage payments are notably below their peak and the latest inflation and employment data reduce the chances of a recession,” said the Redfin’s deputy chief economist, Taylor Marr, in a statement.

Mortgage applications also recovered as rates eased.

Mortgage application activity jumped 27.9% and the refinance rate rose 34% on a seasonally adjusted basis from the prior week, according to the Mortgage Bankers Association’s (MBA) weekly mortgage application survey for the week. closed on January 13, 2023.

If you’re ready to shop for a mortgage loan, you can use the Credible marketplace to compare rates and lenders and get a mortgage pre-approval letter in minutes.

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