Mortgage Rates Decline
Mortgage rates declined in the week that ended June 8 after three consecutive weeks of increases that have helped suppress homebuying and refinancing demand, according to the latest weekly lender survey by Freddie Mac.
The government-backed loan provider reported 30-year, fixed-rate mortgages averaging 6.71%, down from the prior week’s 6.79% but still well above the 5.23% in the comparable week of 2022. The average for 15-year, fixed-rate loans was 6.07%, down from 6.18% in the prior week but higher than the 4.38% average a year earlier.
Government agencies and industry groups have reported that even if interest rates were to decline significantly for an extended period, that would not necessarily raise homebuying since there are other factors at play including slowing home construction and a relative dearth of existing houses now being listed for sale.
“While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers,” Freddie Mac Chief Economist Sam Khater said in a statement.