Mortgage rates, which are the interest rates on home loans, have seen a slight increase this week following an eight-month low last week. Nonetheless, they still hover around the mid-six percent range, as per the data supplied by mortgage provider, Freddie Mac.
As reported on January 25, 2024, the 30-year Fixed Rate Mortgage (FRM) has risen to an average of 6.69%. This is a jump from last week's average of 6.60%. The same period a year ago saw the 30-year FRM at an average of 6.13%.
Meanwhile, the 15-year FRM presently stands at an average of 5.96%, which shows an increase from the previous week's average of 5.76%. A year back, the 15-year FRM was pegged at an average of 5.17%.
Speaking on the recent trends, Sam Khater, Chief Economist at Freddie Mac, said, "The 30-year fixed-rate has stayed fairly consistent over the past month, sitting at 6.69% this week. This stability in rates has encouraged potential homebuyers who were wary of affordability to reenter the market." He added that despite ongoing challenges in inventory, they expect a more active spring homebuying season compared to 2023. He also predicts a steady ascent in home prices.
