Navigating the Ups and Downs of Mortgage Rates: The Latest Update and What it Means for Homebuyers
Mortgage rates have been fluctuating lately, but they’ve been on an upward trend for all loan types. However, the latest data from Freddie Mac reveals a decrease in the average 30-year fixed-rate mortgage from 6.15% to 6.13%. Despite this dip, it’s still higher than last year’s average of 3.55% but lower than the historical average of 7.76% from 1971 to 2022.
Last Wednesday, February 1, the Federal Reserve announced a slight increase of 25 basis points in the federal funds rate and signaled that additional rate hikes might be on the horizon to address the issue of inflation.
One day after the Federal Reserve’s announcement, the average rate on a 30-year fixed-rate mortgage dropped to a more attractive 5.99%. This is the first time the US housing market has seen rates in the 5% range since August and September 2022, making it a great time for those considering a home purchase.