But many buyers need them to get a lot lower
of ConsumerAffairs
After climbing for the last six weeks, mortgage rates have leveled off. They didnt go down this week but they didnt go up either, and economists say thats probably the best that prospective homebuyers can hope for.
Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.78% this week.
After a six-week climb, rates have leveled off, but overall affordability continues to be an issue for potential homebuyers, said Sam Khater, Freddie Macs chief economist. Our latest research shows that mortgage payments compared to rents on the same homes are elevated relative to most of the last three decades."
It may seem counter-intuitive that as other interest rates decline, mortgage rates dont. But those rates march to a different drummer, influenced by the yield on the 10-year Treasury bond and the outlook for the economy.
As economists view President-elect Trumps economic agenda which includes sweeping tariffs they see the possibility of future inflation, which affects how mortgage bankers assess their risk when making a 30-year mortgage loan.
The current mortgage rate on a 30-year loan is not that far above the average rate over the last two decades. Whats changes is the price of homes, which were affordable three years ago when mortgage rates were around 3%.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-14 17:59:49
