Mortgage rates inched up ahead of inflation reading

Key Takeaways:

– Mortgage rates have increased slightly, with the 30-year fixed-rate mortgage averaging 6.66% and the 15-year fixed-rate mortgage averaging 5.87%.
– The slight increase in mortgage rates has led to a slight uptick in homebuyer demand.
– Affordability remains a major challenge for buyers, as prices continue to rise faster than incomes.
– Down payment assistance programs can help homebuyers with closing costs.
– Mortgage rates are expected to continue trending downwards in 2024, but might not fall as fast as expected.
– The Federal Reserve may delay rate cuts, given the strong jobs report and inflation reading.

HousingWire:

Mortgage rates ticked up this week as the 10-year Treasury yield made its way back above 4%.

The 30-year fixed-rate mortgage averaged 6.66% as of Jan. 11, a slight increase from last week’s 6.62%, according to Freddie Mac‘s Primary Mortgage Market Survey released on Thursday. The 15-year fixed-rate mortgage averaged 5.87% this week, down from 5.89% the prior week. HousingWire’s Mortgage Rates Center showed Optimal Blue’s average 30-year fixed rate on conventional loans at 6.66% on Thursday, down from 6.68% recorded at the same time last week.

“Mortgage rates have not moved materially over the last three weeks and remain in the mid-six percent range, which has marginally increased homebuyer demand,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Even this slight uptick in demand, combined with inventory that remains tight, continues to cause prices to rise faster than incomes, meaning affordability remains a major headwind for buyers. Potential homebuyers should look closely at existing state and local resources, such as down payment assistance programs, which can considerably help defray closing costs.”

Mortgage rates dipped below 7% before the start of the new year, steadily declining each week of December. Most housing professionals expect mortgage rates to continue trending downwards in 2024. Economists hope that declining rates will spur more sellers to list their homes. However, mortgage rates might not fall as fast as expected, hampering growth in listing activities. With about two-thirds of outstanding mortgages still carrying rates below 4%, home sellers may choose to delay their selling plans, waiting for a better opportunity.

Forecasters expected the Federal Reserve to begin cutting rates in March. However, given December’s strong jobs report and today’s inflation reading, it’s becoming more likely that those rate cuts will come later in the year, Lisa Sturtevant, chief economist at Bright MLS, said in a statement.

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Property Chomp’s Take:

is a term that is commonly used in web development and design. It refers to a division or container that is used to group and organize content on a webpage. In simpler terms, it is like a box that holds different elements or sections of a webpage.

When it comes to mortgage rates, the

element may not seem directly related. However, understanding the context in which it is used can shed light on its importance in the digital realm. In this article, we will explore the recent mortgage rate trends and how they impact potential homebuyers and sellers.

According to Freddie Mac’s Primary Mortgage Market Survey, mortgage rates have seen a slight increase recently. The 30-year fixed-rate mortgage averaged 6.66%, while the 15-year fixed-rate mortgage averaged 5.87%. These rates may not seem significant, but they play a crucial role in the housing market.

Sam Khater, Freddie Mac’s chief economist, highlighted the impact of these rates on homebuyer demand. He stated that even a slight uptick in demand, combined with tight inventory, contributes to rising home prices. This situation creates affordability challenges for buyers. To overcome this hurdle, Khater advises potential homebuyers to explore existing state and local resources, such as down payment assistance programs, which can help reduce closing costs.

Looking ahead, economists expect mortgage rates to continue trending downwards in 2024. This forecast has raised hopes that more sellers will list their homes, easing the inventory shortage. However, there is a possibility that mortgage rates might not fall as quickly as anticipated. This could hamper growth in listing activities, as homeowners may choose to delay selling until they perceive a better opportunity.

The Federal Reserve’s decision on interest rates also plays a significant role in mortgage rate fluctuations. Initially, forecasters expected the Fed to begin cutting rates in March. However, recent economic indicators, such as a strong jobs report and higher-than-expected inflation, suggest that rate cuts may be postponed until later in the year. This uncertainty adds another layer of complexity to the mortgage rate landscape.

In conclusion, while the

element may seem unrelated to mortgage rates at first glance, it serves as a reminder of the interconnectedness of different aspects of our digital world. Understanding the impact of mortgage rates on the housing market can help potential homebuyers and sellers make informed decisions. It is essential to keep an eye on these rates and stay informed about local resources that can assist in navigating the challenges of home buying and selling.

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