Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year Fixed Rate Mortgage (FRM) averaged 6.48%, a sign that the US housing market will start the year in a complicated way.
“Mortgage application activity plunged to a quarter-century low this week as high mortgage rates continue to weaken the housing market,” said Sam Khater, chief economist at Freddie Mac.
“While mortgage market activity has slowed significantly over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023,” Khater explained.
Freddie Mac notes in his report that homebuyers are waiting for rates to decline more significantly, and when they do, a strong job market and a surge of Millennial renters will support the buying market: “In addition, if rates continue to drop, borrowers who bought in the last year will have opportunities to refinance at lower rates.”
The real estate market in the US continues to suffer and this is shown coincidentally by the data from the Mortgage Bankers Association (MBA) weekly survey of mortgage applications, where it is reported that mortgage applications decreased by 13.2% with Compared to the previous two weeks, for the week ending December 30, 2022.
So were the rates
30 year mortgage
The 30-year fixed-rate mortgage averaged 6.48% as of January 5, 2023, up from last week when it averaged 6.42%. A year ago at this time, the 30-year FRM averaged 3.22%.
15 year mortgage
The 15-year fixed-rate mortgage averaged 5.73%, up from last week when it averaged 5.68%. A year ago at this time, the 15-year FRM averaged 2.43%.
PMMS ® focuses on fully amortizing, conforming, conventional home purchase loans for borrowers who put down 20 percent and have excellent credit.
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– US mortgage applications plummeted 13.2% in the last two weeks