A Pause After Weeks of Increases

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Real Estate

 

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.76 percent.

“The 30-year fixed-rate mortgage paused its multi-week climb but continues to hover under eight percent,” said Sam Khater, Freddie Mac’s Chief Economist. “The Federal Reserve again decided not to raise interest rates but have not ruled out a hike before year-end. Coupled with geopolitical uncertainty, this ambiguity around monetary policy will likely have an impact on the overall economic landscape and may continue to stall improvements in the housing market.”

30-year fixed-rate mortgage averaged 7.76 percent as of November 2, 2023, down from last week when it averaged 7.79 percent. A year ago at this time, the 30-year FRM averaged 6.95 percent.
15-year fixed-rate mortgage averaged 7.03 percent, unchanged from last week. A year ago at this time, the 15-year FRM averaged 6.29 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 NAR on this weeks rate movements.

Aspiring home buyers received two semi-encouraging news items this week: the Fed kept the federal funds rate flat yesterday, and the 30-year fixed mortgage interest rate remained nearly unchanged from last week. While both are higher than in recent years and impact the housing market, this could be a turning point for the relief potential buyers and sellers desperately need.

The 30-year fixed had a minor reduction to 7.76% from 7.79% last week. For home buyers, 7.76% means that the typical monthly payment would be $2,290 for a single-family existing home at the median price of $399,200. For the typical existing condo, the typical payment would be $1,901.

However, these are only broad strokes in a housing market that is local. In the West, the median home price is $606,100, and today’s rate means a monthly payment of $3,477. However, for buyers in the Midwest, where home prices are a median of $293,300, this means a payment of $1,693. Some home buyers face stiff competition with limited inventory in their price points and need significant help with negotiations for a successful home bid. A REALTOR® is essential to helping home buyers with this transaction.
 
Jessica Lautz
Deputy Chief Economist and Vice President of Research
Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.