Mortgage Rates Drop To Eight-Month Low

In a favorable turn of events, mortgage rates have plummeted to their lowest point in eight months, according to the latest Freddie Mac Primary Mortgage Market Survey. 

For the week ending January 18, both the 30-year and 15-year mortgage rates experienced significant drops, with a decrease of six basis points for the 30-year rate, now standing at 6.60%, and an even more substantial 11 basis point drop for the 15-year rate, which now sits at 5.76%. These rates have seen a remarkable decline of more than 100 basis points since their peak in October.

“Mortgage rates decreased this week, reaching their lowest level since May of 2023,” Freddie Mac’s Chief Economist Sam Khater said. “This is an encouraging development for the housing market and in particular first-time homebuyers, who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.”

Key highlights from the survey include:

The 30-year FRM averaged 6.60% as of January 18, 2024, down from the previous week when it averaged 6.66%. One year ago, during the same period, the 30-year FRM averaged 6.15%.

The 15-year FRM averaged 5.76%, marking a decrease from the prior week when it averaged 5.87%. In comparison to one year ago, the 15-year FRM has risen from an average of 5.28% to its current rate.