Mortgage Rates Fall to 7.11% for a Fourth Straight Week, Lowest in Seven Weeks
The average rate on a 30-year fixed mortgage fell for a fourth straight week to its lowest level in seven weeks. Freddie Mac said Thursday that the 30-year fixed rate averaged 7.11% for the week ending Nov. 12, down 0.07 percentage points from 7.18% last week.
The 15-year fixed rate fell as well, to 6.45% from 6.57%, down 0.12 percentage points. Rates remain higher than a year ago. A year ago the 30-year fixed rate was 6.24% and the 15-year fixed rate was 5.49%.
The decline began from a mid-October peak. The 30-year fixed rate climbed to 7.40% for the week of Oct. 15, then fell to 7.32% in the week of Oct. 22, 7.24% in the week of Oct. 29 and 7.18% in the week of Nov. 5. The four-week drop totals 0.29 percentage points.
Sam Khater, Freddie Mac’s chief economist, said the rate reaching its lowest level in seven weeks is welcome news for homebuyers. He said lower rates give buyers greater flexibility.
The decline may not last. After October consumer prices came in hotter than expected, daily rates jumped 0.12 percentage points on Tuesday to 7.30%. The Freddie Mac weekly survey averages rates offered from the prior Thursday through Wednesday, so only part of Tuesday’s jump is reflected. Jiayi Xu, an economist at Realtor.com, said a reversal could come as soon as next week.
The Federal Reserve’s next move could also affect rates. Federal Reserve Governor Christopher Waller said the December meeting should consider a 0.5-percentage-point increase if inflation stays hot. CME FedWatch shows markets pricing a December 0.25-percentage-point increase at above 93%.
Housing demand remains weak. The National Association of Realtors said existing-home sales fell 5.5% in October to an annual rate of 3.75 million homes, the lowest in 16 years. Mortgage applications are recovering as rates fall. The Mortgage Bankers Association said total mortgage applications rose 6.2% last week.
The next Freddie Mac weekly survey comes out Thursday, Nov. 19.