In its latest Primary Mortgage Market Survey, the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed that 30-year fixed rate mortgages averaged 6.95 per cent, down from last week when they stood at 7.03 per cent. A year ago, the average rate was 6.31 per cent.
Sam Khater, Freddie Mac’s chief economist, noted that rates were likely to continue their downward trajectory.
He said: “Potential homebuyers received welcome news this week as mortgage rates dropped below seven percent for the first time since August.
“Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year.”
The 15-year fixed rate mortgage averaged 6.38 per cent, up from 6.29 last week. A year ago, the average stood at 5.54 per cent.
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