Mortgage rates barely moved this week after marching higher for the past month-and-a-half, while purchase demand remains stalled in the stagnant housing market.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage ticked down to 6.78% from last week's reading of 6.79%. The average rate on a 30-year loan was 7.44% a year ago.
A "for sale" sign hangs in front of a house in Patchogue, New York, on June 1, 2024. (Steve Pfost/Newsday RM via Getty Images / Getty Images)
"After a six-week climb, rates have leveled off, but overall affordability continues to be an issue for potential homebuyers," said Sam Khater, Freddie Mac’s 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."
Many would-be buyers and sellers are holding out to see if rates fall further. Currently, about 80% of mortgage holders have a rate below 5%, according to a Zillow survey.
The average rate on the 15-year fixed mortgage also fell slightly to 5.99% from 6% last week. One year ago, the rate on the 15-year fixed note averaged 6.76%.