Mortgage interest rates have dropped for the fifth consecutive week to 7.22%, according to the latest Freddie Mac Primary Mortgage Market Survey.
"Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. “The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels. The modest uptick in demand over the last month signals that there will likely be more competition in a market that remains starved for inventory.”
Last week the 30-year fixed rate mortgage was 7.22% down from 7.29%, but still up from a year ago when it averaged 6.49%. The 15-year fixed rate mortgage average is 6.56% down from 6.67% the previous week. A year ago at this time it was 5.76%.
This comes following reports that pending home sales in October were down 1.5%. Industry groups have been predicting conditions will improve in 2024 as rates fall, but it's not necessarily enough to overcome the inventory problem.
Data released by ATTOM found that 1.54 million mortgages secured by residential property were issued during the third quarter, representing a 3% decline from the prior three-month period. That drop-off marked the ninth decline in the last 10 quarters – a string broken only by a spike during the second quarter of this year.