US Mortgage Rates Edge Higher for 2nd Week

The average rate on a 30-year fixed mortgage was at 6.66% as of January 11th, edging 4bps higher from the previous week. The result mirrored the slight increase in Treasury yields in the period at hot economic data drove markets to pare the expectation of a rate cut by the Federal Reserve by the first quarter of the year, lifting mortgage prices. One year ago, the average rate on a 30-year fixed mortgage was at 6.33%. “Mortgage rates have not moved materially over the last three weeks and remain in the mid-six percent range, which has marginally increased homebuyer demand,” said Sam Khater, Freddie Mac’s Chief Economist. “Even this slight uptick in demand, combined with inventory that remains tight, continues to cause prices to rise faster than incomes, meaning affordability remains a major headwind for buyers. Potential homebuyers should look closely at existing state and local resources, such as down payment assistance programs, which can considerably help defray closing costs.”

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