Freddie Mac – Mortgage rates drop to 7.29% – their lowest since late September

Freddie Mac Mortgage Rates – November 22, 2023

What Happened to Mortgage Rates This Week:

The Freddie Mac fixed rate for a 30-year mortgage eased further this week dipping another 15 basis points to 7.29%, as mixed data continue to keep investors guessing. Construction data showed surprising strength, especially in light of fading builder confidence as mortgage rates neared 8% in October, with both permits and starts ticking higher. Meanwhile, existing home sales slid to their worst reading since 2010 as home prices rose and mortgage rates pushed the cost of buying even higher.  To combat higher costs, homebuyers have turned to more money upfront. According to a recent Realtor.com report, down payments rose to a peak in the third quarter of 14.7%.

What it Means for the Housing Market:

In a few short weeks, mortgage rates have largely erased the sharp climb traversed in October. Nevertheless, the cost of borrowing remains high. Except for the most recent eight weeks, today’s rate is the highest since 2000. As a result, even after the move lower, today’s rates are unlikely to draw more than the most motivated buyers back into the market. If rates can hold onto this improvement, or notch a further decline, however, this could mean that ‘buying a home’ does seem like a viable new year’s resolution to a greater number of households.

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Freddie Mac – Mortgage rates drop to 7.29% – their lowest since late September - Realtor.com Economic Research