Mortgage Rates Continue To Drop

Mortgage rates, or interest rates on home loans, continued on its downward track after reaching record levels last month, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 6.31 percent for the week ending December 15, 2022, down from 6.33 percent last week. A year ago at this time, the average rate was 3.12 percent.

The 15-year FRM this week averaged 5.54 percent, down from 5.67 percent last week. A year ago at this time, the 15-year FRM averaged 2.34 percent.

"Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve's monetary policy reverberated through the economy," said Sam Khater, Freddie Mac's Chief Economist. "The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad news is that demand remains very weak in the face of affordability hurdles that are still quite high."

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