This week’s increase in U.S. mortgage rates has added to the skepticism about any significant reductions in interest rates for prospective homebuyers in the near future.
As affordability issues intensify and consumer hope for lower interest rates this year fades, more potential homebuyers are holding off on their search. The anticipation of falling loan rates has become the primary reason cited by individuals for not actively looking for a home.
According to the latest Primary Mortgage Market Survey released by Freddie Mac, the average rate for a 30-year fixed-rate mortgage (FRM) stood at 6.82 percent as of April 4, 2024.
“Once again, mortgage rates remained relatively stable this week, with the average hovering around 6.8 percent,” commented Sam Khater, Freddie Mac’s Chief Economist. “Since the onset of 2024, the rate for a 30-year fixed-rate mortgage hasn’t hit the seven percent mark, nor has it fallen below 6.6 percent. Although the economic indicators suggest a decrease in inflation rates, a significant reduction in mortgage rates isn’t expected in the short term. However, a slight improvement in housing inventory could help moderate the increase in home prices.”
Key Points from Freddie Mac:
The average rate for a 30-year FRM was 6.82 percent as of April 4, 2024, a slight rise from the previous week’s average of 6.79 percent. This time last year, the average was 6.28 percent.
The average rate for a 15-year FRM was 6.06 percent, showing a slight decrease from the previous week’s average of 6.11 percent. A year ago, the average was 5.64 percent.