US Real Estate Market Continues to Struggle as 30-Year Fixed-Rate Mortgage Averages 6.57%

Freddie Mac published the results of its Primary Mortgage Market Survey (PMMS), with data showing that the US real estate market continues to be difficult, as the 30-year fixed-rate mortgage (FRM) averaged 6.57%a higher figure than last week.

“The US economy is showing continued resilience that, combined with debt ceiling concerns, led to higher mortgage rates this weeksaid Sam Khater, chief economist at Freddie Mac.

“Reduced affordability remains a problem for interested homebuyers and homeowners seem unwilling to lose their low rate and put their home on the market,” Khater added.

Freddie Mac points out that if this situation continues to limit supply, could open up an opportunity for builders help address the nation’s housing shortage.

The realtor has said homebuyers continue to face low home inventory, high prices and high mortgage rates, leaving many discouraged in their search.

This is how the rates were:

30-year mortgage:

The 30-year fixed-rate mortgage averaged 6.57% as of May 25, 2023, compared to last week when it averaged 6.39%. A year ago at this time, the 30-year FRM averaged 5.10%.

15-year mortgage:

The 15-year fixed-rate mortgage averaged 5.97%, more than last week when it averaged 5.75%. A year ago at this time, the 15-year FRM averaged 4.31%.

PMMS focuses on fully amortizing, conforming, conventional home purchase loans for borrowers with a 20% down payment and excellent credit.

Keep reading:
· Housing: Learn about the best and worst places to rent in the US.
· More expensive housing: 30-year mortgage rate reverses trend from last week
· What is the outlook for homebuyers in the New York metropolitan area in 2023

2023-05-26 15:25:34

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