Mortgage rates fell for a second week, according to weekly data compiled by Freddie Mac.
The 30-year fixed-rate mortgage (FRM) averaged 6.42% as of Mar. 16, down from 6.6% recorded last week. One year ago, the 30-year FRM averaged 4.42%.
Meanwhile, the 15-year fixed-rate mortgage averaged 5.68%, down from last week when it averaged 5.90%. At the same time in 2022, the 15-year FRM averaged 3.63%.
"Mortgage rates continued to slide down as financial market concerns came to the fore over the last two weeks," said Sam Khater, Freddie Mac’s Chief Economist.
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Khater continued that, "on the homebuyer front, the news is more positive with improved purchase demand and stabilizing home prices. If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season."
Wednesday's dual announcement by the Federal Reserve that it will raise interest rates 25 more basis points, while hinting that it may be done with rate hikes, has taken pressure off of mortgage rates.
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The real estate market, and mortgage rates in general are very dependent on the base borrowing rate set by the Fed, because banks must lend at higher rates than they borrow to make any money.
Homebuying is expected to recover as less as cheaper mortgage rates could save homeowners hundreds or even thousands of dollars per year.
