The average 30-year mortgage rate fell for the third week in a row this week as markets gain confidence that rate hikes will slow in 2023, according to a new report from Freddie Mac.
According to Freddie Mac’s Primary Mortgage Market Research, the average 30-year fixed-rate mortgage rate for the week ending December 1, 2022 was 6.49%, up from 6.58% the previous week.
The average 15-year fixed-rate mortgage averaged 5.76%, up from an average of 5.9% the previous week.
“Mortgage rates continued to fall this week as optimism grew that the Federal Reserve will slow the pace of rate hikes,” said Sam Khater, chief economist at Freddie Mac. “Even as interest rates decline and home prices soften, economic uncertainty continues to limit homebuyer demand as we enter the final month of the year.”
According to Bank of America’s latest forecast, the US may enter a recession in the first quarter of 2023. Although inflation growth has cooled, the Mortgage Bankers Association (MBA) said inflation will not reach the Fed’s 2% target rate until 2024.
The Consumer Price Index (CPI), a measure of inflation, rose 7.7% year-on-year in October, down from 8.2% growth in September. However, that’s still close to the 40-year high of 9.1% earlier this year. With inflation continuing to remain above average, the Federal Reserve is expected to continue raising interest rates next year could slow down.
If you want to take advantage of today’s interest rates before a potential increase, consider refinancing your loan to lower your monthly payment. Visit Credible to find your personalized rate without affecting your credit score.
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Home delisting has reached a record high
A record 2% of U.S. homes for sale were delisted each week on average in the 12 weeks ending Nov. 20, compared with 1.6% last year, amid high home prices, according to a new report from Redfin.
A real estate broker notes that sellers are taking their homes off the market because they often don’t get offers for their asking price or don’t make an offer at all. Redfin attributes this to rising mortgage rates and persistently high home prices.
“Some sellers have a hard time understanding that we’re no longer in a frenzy in the housing market — it’s hard for them to swallow that they missed the boat by asking for a higher price,” Heather Kruayai, a Redfin real estate agent in Jacksonville, FL, said in a report. “By the time sellers realize their listing is too expensive, it’s already been on the market too long and is considered stale. I recently had two sellers pull their home off the market after 45+ days.”
If you’re struggling in the current economy, consider refinancing your mortgage at a lower rate to lower your monthly payments. Visit Credible to speak with a refinancing specialist and see if this option is right for you.
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House price growth is slowing
Despite the current environment of rising home prices, the pace of growth is beginning to slow, according to CoreLogic.
Annual growth in home prices slowed to 13.5% in August, marking the fourth straight month of low annual growth, according to the latest CoreLogic Home Price Index. The firm expects annual growth in US home prices to continue to slow to 3.9% over the next 12 months to September 2023.
“Rapid price increases during the COVID-19 pandemic have caused many U.S. housing markets to reach levels that are completely unaffordable for potential local homebuyers,” said Selma Hepp, interim chief of CoreLogic’s office of chief economist. “West Coast and Mountain West home prices are slowing from this spring’s highs, but remain higher than a year ago.
“In contrast, markets that continue to see high-income household migration are still experiencing home price increases that are significantly higher than national price increases,” Hepp said.
If you want to take advantage of low mortgage rates, you may want to consider refinancing your home loan. Visit Credible to compare multiple mortgage lenders and choose the best option for you.
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