After over a month of dips in mortgage rates, the 30-year fixed-rate average bumped up to 6.39% from 6.27% the previous week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac.
This week’s numbers:
- 30-year fixed-rate mortgage averaged 6.39% as of April 20, 2023, up from last week when it averaged 6.27%. A year ago at this time, the 30-year FRM averaged 5.11%.
- 15-year fixed-rate mortgage averaged 5.76%, up from last week when it averaged 5.54%. A year ago at this time, the 15-year FRM averaged 4.38%.
Major takeaways:
“For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s chief economist. “Home prices have stabilized somewhat, but with supply tight and rates stuck above six percent, affordable housing continues to be a serious issue for many potential homebuyers. Unless rates drop into the mid five percent range, demand will only modestly recover.”
Realtor.com economic data analyst, Hannah Jones commented:
“The Freddie Mac fixed rate for a 30-yr mortgage ticked up 12 basis points to 6.39% after five weeks of declines as 10-yr treasury yields climbed higher. Mortgage rates are the product of the larger economic environment, including inflation and employment data as well as banking stability and the Fed’s actions. Recent data points to a still-resilient, though cooling economy, leading many to believe the Fed will elect to raise the target rate at next month’s meeting. As investors responded to relatively healthy economic indicators, bond yields ticked higher, taking mortgage rates with them.
“One year ago, mortgage rates reached 5 percent for the first time since 2011. Rates have remained above five percent for all but one week since reaching that level. Last year’s persistent mortgage rate climb, combined with inflation and home price growth, led many buyers to retreat from the housing market. And while spring is typically a season marked by a lively housing market, this year is proving to be less energetic than previous ones. Nevertheless, buyer demand shows signs of improvement with each gain in affordability. However, housing demand remains largely stifled as many buyers wait on the sidelines until the cost of purchasing a home becomes more doable.
“A recent Realtor.com survey revealed that 82% of homeowners feel ‘locked-in’ by their current mortgage rate. As a result, many would-be sellers who are also planning to buy a new home, are choosing not to list their home for sale. Sellers who do enter the market are met with lower buyer demand, which puts downward pressure on prices, as sellers vie for buyer attention. Potential sellers should calibrate their expectations to today’s market. Buyers are seeing less new inventory which means that a freshly listed, well-priced home may be met with enthusiasm, resulting in a favorable deal for both parties. While demand remains sluggish nationally, many affordable markets are seeing sustained attention, emphasizing the importance of local market data in selling decisions.”
