Mortgage rates have fallen to their lowest levels since late October, providing a boost to homebuyer interest. The 30-year fixed-rate mortgage averaged 6.69% for the week ending Dec. 5, down 12 basis points from last week. The 15-year fixed-rate mortgage also declined, averaging 5.96%, down 14 basis points.
- A year ago, the 30-year fixed-rate mortgage stood at 7.03%, reflecting a notable easing in borrowing costs.
What They’re Saying: “This week, mortgage rates decreased to their lowest level in over a month,” said Sam Khater, Freddie Mac’s chief economist. “Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved. The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist.”
By The Numbers: Mortgage demand for purchases jumped to an 11-month high last week, underscoring how sensitive buyers are to rate movements.
Bottom Line: The dip in mortgage rates is energizing homebuyer demand, but sustained affordability issues and a growing but limited level of inventory could keep the housing market recovery modest.
