Mortgage Rates Bounce Up To 6.66%

Freddie Mac's Primary Mortgage Survey showed the 30-year fixed-rate mortgage still hovering around 6.66% last week. And that was before the latest report from the Labor Department Wednesday that revealed that inflation increased- 0.3% in December.  

“Mortgage rates have not moved materially over the last three weeks and remain in the mid-six percent range, which has marginally increased homebuyer demand,”  Freddie Mac Chief Economist Sam Khater said. “Even this slight uptick in demand, combined with inventory that remains tight, continues to cause prices to rise faster than incomes, meaning affordability remains a major headwind for buyers. Potential homebuyers should look closely at existing state and local resources, such as down payment assistance programs, which can considerably help defray closing costs.”

The 30-year fixed-rate mortgage averaged 6.66% as of January 11, 2024, up from last week when it averaged 6.62%. A year ago at this time, the 30-year averaged 6.33%.

The 15-year fixed-rate averaged 5.87%, down from last week when it averaged 5.89%. A year ago at this time, the 15-year averaged 5.52%.

However, Mortgage Banker's Association President and CEO Bob Broeksmit was optimistic about what the future holds based on mortgage application data. 

"2024 started strong, with gains in both refinance and home purchase applications leading to a 10 percent jump in overall activity for the week," Broeksmit said in his weekly statement. "With rates expected to remain below seven percent for the foreseeable future, MBA anticipates renewed activity in the housing market heading into the spring, especially if housing supply continues to rise.”