Mortgage rates drop to lowest level since May
Washington, DC (CNN) — After moving higher the past two weeks, mortgage rates fell this week, dropping to the their lowest level since May 2023.
Posted — UpdatedThe 30-year fixed-rate mortgage averaged 6.60% in the week ending January 18, down from 6.66% the previous week, according to data from Freddie Mac released Thursday. A year ago, the average 30-year fixed-rate was 6.15%.
Mortgage rates remain more than a full percentage point lower than their highest levels of last year: 7.79%. That’s improving affordability for homebuyers who’ve been struggling in one of the toughest markets in decades.
“This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability,” said Sam Khater, Freddie Mac’s chief economist, in a statement.
However, he added, as more buyers come in off the sidelines attracted by lower rates, more pressure will be placed on already depleted inventory for sale. That is expected to keep prices elevated.
This is a developing story and will be updated.
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