Mortgage rates, also known as interest rates on home loans, have seen a decrease this week, as reported by mortgage provider, Freddie Mac.
On February 1, 2024, the 30-year fixed rate mortgage (FRM) was documented at an average of 6.63 percent. This offers a slight decrease from the previous week's average of 6.69 percent. If we look back to the same time period a year ago, the 30-year FRM significantly averaged 6.09 percent.
In addition, the 15-year FRM was lately averaged at 5.94 percent, which also slightly decreased from the previous week's average of 5.96 percent. However, compared to the average of 5.14 percent a year ago, we can observe the noticeable increase in rates.
"Despite homeownership getting affected by affordability issues, it’s the combination of a robust economy, encouraging demographics, and falling mortgage rates that are paving the way for a stronger housing market," expressed Sam Khater, the Chief Economist at Freddie Mac.
Adding more context to his statement, Khater explained, "Despite the stability of mortgage rates over the past two months, we foresee a further decline in rates owing to the continued deceleration in inflation. The economy continues to excel due to solid job and income growth, while household formation rate is surpassing its pre-pandemic levels. These positive conditions are expected to offer robust fundamental support to the market in the foreseeable future."
