Sign In  |  Register  |  About Mill Valley  |  Contact Us

Mill Valley, CA
September 01, 2020 1:29pm
7-Day Forecast | Traffic
  • Search Hotels in Mill Valley

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Mortgage rates rise as demand continues to slide

The average rate for the 30-year fixed-rate mortgage rose to 6.82% this week as the housing market remains stalled due to elevated interest rates and home prices.

Mortgage rates increased slightly this week as demand continues to wane amid the ongoing housing affordability crisis.

Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate on the benchmark 30-year fixed mortgage rose to 6.82% this week from 6.79% last week. The average rate on a 30-year loan was 6.28% a year ago.

At the same time, the average rate on the 15-year fixed mortgage ticked down to 6.06% after coming in last week at 6.11%. One year ago, the rate on the 15-year fixed note averaged 5.64%.

REAL ESTATE EXPERT WARNS ‘NO SIGNS’ HOUSING AFFORDABILITY WILL IMPROVE FOR BUYERS IN NEAR FUTURE

"Since the start of 2024, the 30-year fixed-rate mortgage has not reached seven percent but has not dropped below 6.6 percent either," said Sam Khater, Freddie Mac’s chief economist.

"While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term," Khater added. "On the plus side, inventory is improving somewhat, which should help temper home price growth."

SIX-FIGURE SALARY NOW NEEDED TO BUY AVERAGE US HOME

The combination of persistently elevated rates and record-high home prices has left the housing market stalled for months.

The Mortgage Bankers Association reported Wednesday that purchase applications have fallen for three consecutive weeks, putting a damper on the typically busy spring season.

Many would-be buyers remain priced out of the market and have given up on making a purchase right now. Realtor.com's February 2024 Rental Report found it is now more affordable to rent than to buy a home in all 50 states.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

At the same time, many potential sellers are unwilling or unable to move due to the affordability crisis, as 90% of homeowners are locked in at lower rates.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 MillValley.com & California Media Partners, LLC. All rights reserved.