June 1,2023 6.79%
Freddie Mac Commentary: Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike. Although there has been a steady flow of purchase demand around rates in the low to mid six percent range, that demand is likely to weaken as rates approach seven percent.
May 25, 2023 6.57%
Freddie Mac Commentary:The U.S. economy is showing continued resilience which, combined with debt ceiling concerns, led to higher mortgage rates this week. Dampened affordability remains an issue for interested homebuyers and homeowners seem unwilling to lose their low rate and put their home on the market. If this predicament continues to limit supply, it could open up an opportunity for builders to help address the country’s housing shortage.
May 18, 2023 6.39%
Freddie Mac Commentary:The 30-year fixed-rate mortgage averaged 6.39 percent this week, as economic crosscurrents have kept rates within a ten-basis point range over the last several weeks. After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to modestly rise over the last few months. This indicates that while affordability remains a hurdle, homebuyers are getting used to current rates and continue to pursue homeownership.
May 11, 2023 6.35%
Freddie Mac Commentary:This week’s decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year. While inflation remains elevated, its rate of growth has moderated and is expected to decelerate over the remainder of 2023. This should bode well for the trajectory of mortgage rates over the long-term.
May 4, 2023 6.39%
Freddie Mac Commentary:This week, mortgage rates inched down slightly amid recent volatility in the banking sector and commentary from the Federal Reserve on its policy outlook. Spring is typically the busiest season for the residential housing market and, despite rates hovering in the mid-six percent range, this year is no different. Interested homebuyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability.
April 27, 2023 6.43%
Freddie Mac Commentary:The 30-year fixed-rate mortgage increased modestly for the second straight week, but with the rate of inflation decelerating rates should gently decline over the course of 2023. Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the remainder of the year should be welcome news to borrowers who are looking to purchase a home.
April 20, 2023 6.39%
Freddie Mac Commentary:For the first time in over a month, mortgage rates moved up due to shifting market expectations. Home prices have stabilized somewhat, but with supply tight and rates stuck above six percent, affordable housing continues to be a serious issue for potential homebuyers. Unless rates drop into the mid five percent range, demand will only modestly recover.
April 13, 2023 6.27%
Freddie Mac Commentary: Mortgage rates decreased for the fifth consecutive week. Incoming data suggest inflation remains well above the desired level but showing signs of deceleration. These trends, coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer.
History of the Freddie Mac 30 YR Fixed Rate Mortgage Survey
October 21, 1981 18.39% (All Time High)
December 24, 2020 2.66% (All Time Low)
January 5th, 2023 6.48% (1st report of 2023)
February 2nd, 2023 6.09% (Lowest of 2023) Right before the Jobs report unexpectedly showed 517,000 new jobs were created in January of 2023. Then the rate started trending higher.
June 1, 2023 the survey said 6.79% (Highest of 2023)
For more information contact the John Marbury Group! john@colonybank.com
John Marbury - 205-266-5669 john.marbury@colonybank.com NMLS# 740833
Donna Johnson 205-948-7933 donna.johnson@colonybank.com NMLS# 740828
For updates, mortgage calculators and online application go to: https://www.johnmarbury.com/For Freddie Mac survey information: https://www.freddiemac.com/pmms
Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution. Alteration of this document or its content is strictly prohibited. ©2023 by Freddie Mac.
Comments
Comment Submitted!