Freddie Mac today (02/15/2024) released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.77 percent.
"On the heels of consumer prices rising more than expected, mortgage rates increased this week,” said Sam Khater, Freddie Mac’s Chief Economist. “The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more than half of all states compared to a year earlier.”
The 30-year FRM averaged 6.77 percent as of February 15, 2024, up from last week when it averaged 6.64 percent. A year ago at this time, the 30-year FRM averaged 6.32 percent.
The 15-year FRM averaged 6.12 percent, up from last week when it averaged 5.90 percent. A year ago at this time, the 15-year FRM averaged 5.51 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.
Here's reaction from Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®
Mortgage interest rates for the 30-year fixed mortgage averaged 6.77% this week, up from 6.64% last week based on Freddie Mac data. While mortgage interest rates have edged up weekly, the overall trajectory from fall 2023 is down and is now a full percentage point below the recent high.
For home buyers purchasing the typical home at $400,000 (with a 20% down payment), the mortgage payment is $2,080. While mortgage interest rates may come down to the low 6% range in the middle to later part of the year, buyers must weigh what makes the most sense for them as home prices are expected to climb due to limited inventory. Timing the real estate market based purely on mortgage interest rates (especially marginal changes) rarely works when new babies, marriages, and jobs are the real decision-makers.