comscore Mortgage rates slip for fourth week | Honolulu Star-Advertiser
Every act of aloha counts. Click here to DONATE to the MAUI RELIEF Fund.
Top News

Mortgage rates slip for fourth week

Honolulu Star-Advertiser logo
Unlimited access to premium stories for as low as $12.95 /mo.
Get It Now
  • STAR-ADVERTISER FILE

    STAR-ADVERTISER FILE

Mortgage rates in the U.S. fell for a fourth straight week.

The average for a 30-year, fixed loan was 6.09%, down from 6.13% last week, Freddie Mac said in a statement today.

Mortgage costs have come down almost a full percentage point from their recent high, giving hope to some would-be homebuyers looking for a way into a deal. The bidding wars that marked the pandemic housing rally have cooled, and prices are expected to moderate further in the coming months. Still, with listings in short supply, affordability hurdles remain.

The decline in rates, after peaking in November at 7.08%, “can allow as many as 3 million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price,” Sam Khater, Freddie Mac’s chief economist, said in the statement.

The Federal Reserve on Wednesday announced a 25 basis-point hike to its benchmark interest rate, slowing the pace of its drive to tame inflation. While the Fed’s efforts appear to be working, Chair Jerome Powell said the central bank has “more work to do.”

The Fed controls short-term rates, but long-term rates, including 30-year mortgages, “are a function of market expectations for the path of the economy,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association. “Investors are betting that the economic slowdown and the Fed’s eventual victory over inflation will result in lower rates over time.”

The bankers group sees mortgage rates falling modestly in 2023, ending the year around 5%.

Comments (2)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up