Mortgage Rates Continue to Fall, Reaching 52-Week Low
By Mortgage rates have been on a downward trend over the past month, with the average 30-year fixed-rate mortgage refinance rate currently at 6.59%, compared to 6.56% last week and the 52-week low of 6.41%. Rates for 15-year fixed refinance mortgages have inched up to 5.87%, higher than the 52-week low of 5.63%, while the 20-year fixed rate mortgage refinance is currently 6.54%.
The Mortgage Bankers Association’s survey for the week ending Jan. 27 found that overall, purchase activity is down 41% from the same week a year ago, and that purchase applications for a mortgage dropped 10% on a seasonally adjusted basis compared with the previous week.[0]
Freddie Mac has reported that the rate of a 30-year fixed mortgage decreased to 6.09% from 6.13% the week before. [1]
First American Deputy Chief Economist Odeta Kushi said, “If evidence over the coming months suggests that inflation is on a consistent downward trend, mortgage rates may continue to decline and activity in the housing market will pick up — just in time for spring home-buying season.”[2]
Realtor.com® Chief Economist Danielle Hale said, “For buyers looking at a housing market with a rising number of home inventories and retreating prices, there is hope that 2023 will offer more opportunities.”[3]
LendingTree's Senior Economist Jacob Channel said, “Right now might appear more appealing to some buyers because, recently, the housing market has been cooling. Prices are dropping in many areas, housing supply is rising, sellers are offering more concessions and mortgage rates are falling.”[4]
The average rate for a benchmark 30-year mortgage could slip back under 6% over the next couple of weeks. According to Credible, mortgage rates for home purchases have risen since yesterday, while mortgage refinance rates have risen across all terms since yesterday.[5] A good mortgage rate is one that’s the lowest you can qualify for based on your individual factors, such as credit history, income, other debts, down payment amount and more.[6]
0. “Mortgage rates fall again, edge closer to 6%” Yahoo News, 2 Feb. 2023, https://news.yahoo.com/mortgage-rates-fall-again-edge-closer-to-6-170009094.html
1. “Instant Reaction: Mortgage Rates, February 2, 2023” National Association of Realtors, 2 Feb. 2023, https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-february-2-2023
2. “With FOMC hike baked in, mortgage rates sink” National Mortgage News, 2 Feb. 2023, https://www.nationalmortgagenews.com/news/with-fomc-hike-baked-in-mortgage-rates-sink
3. “Mortgage Rate Drop Creates a Homebuying Window, but How Long Will It Last?” Realtor.com News, 3 Feb. 2023, https://www.realtor.com/news/trends/mortgage-rate-drop-creates-a-homebuying-window-but-how-long-will-it-last
4. “3 Housing Market Predictions for February” Nasdaq, 31 Jan. 2023, https://www.nasdaq.com/articles/3-housing-market-predictions-for-february
5. “Today's 30-year mortgage rates fall to 6.5 percent | Jan. 31, 2023” FOX 6 Milwaukee, 31 Jan. 2023, https://www.fox6now.com/money/todays-mortgage-rates-january-31-2023
6. “Housing Market Shows Signs of Thawing – WSJ” The Wall Street Journal, 6 Feb. 2023, https://www.wsj.com/articles/housing-market-shows-signs-of-thawing-11675617472
