Freddie Mac's Primary Mortgage Market Survey found last week's 30-year fixed-rate mortgage (FRM) dropped 0.26 percentage points to 7.5%.
“As Treasury yields decline, the 30-year fixed-rate mortgage dropped a quarter of a percent, the largest one-week decrease since last November,” Freddie Mac’s Chief Economist Sam Khater said. “Incoming data show that household debt continues to rise, primarily due to mortgage, credit card,The and student loan balances. Many consumers are feeling strained by the high cost of living, so unless mortgage rates decrease significantly, the housing market will remain stagnant.”
The 30-year fixed-rate mortgage averaged 7.5% as of November 9, 2023, down from last week when it averaged 7.76%. A year ago at this time, the 30-year FRM averaged 7.08%.
The 15-year fixed-rate mortgage averaged 6.81%, down from last week when it averaged 7.03%. A year ago at this time, the 15-year FRM averaged 6.38%.
"With the 30-year fixed mortgage rates persisting at their two-decade highs for seven consecutive weeks, significant challenges have arisen for homebuyers," Realtor.com Economist Jiayi Xu said. "While the median listing price in October 2023 stood at the same level as last year, elevated mortgage rates have resulted in a significant increase in the cost of financing a typical home for sale."
The increased monthly cost of a home, according to Realtor.com, is $166, which is a 7.4% rise compared to the previous year. In addition, it has raised the required annual household income for purchasing a median-priced home by $6,600, reaching a total of $120,000.
