After Three Weeks of Declines, Mortgage Rates Inch Up

After three weeks of consecutive declines, the national average 30-year fixed rate mortgage (FRM) rose to 6.72% as of Dec. 19, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). 

That’s up from a national average of 6.60% on Dec. 12. Last year was similar; the 30-year fixed rate mortgage averaged 6.67 percent at this time in 2023. 

In these latest PMMS data, the 15-year fixed rate mortgage averaged 5.92 percent, an increase from an average last week of 5.84%. A year ago, the 15-year FRM averaged 5.95%.

“For the most part, mortgage rates have moved between 6% and 7% over the last 12 months,” said Sam Khater, Freddie Mac chief economist. “Homebuyers are slowly digesting these higher rates and are gradually willing to move forward with buying a home, resulting in additional purchase activity.”

Despite market headwinds, real estate brokerage Redfin has also noted that increase in buyer activity, with recent stirring in signals like more home tours and mortgage applications, as buyers gain confidence and appear to be accepting new norms of higher rates.