Long-term mortgage rates have remained unchanged this week, despite a slight decline in shorter-term rates. This stability in mortgage rates has done little to boost the housing market, which continues to experience lackluster sales.
According to Freddie Mac's latest Primary Mortgage Market Survey, the average rate on the benchmark 30-year fixed mortgage held steady at 6.35%. This is a significant drop from the 7.12% average rate recorded a year ago. Meanwhile, the average rate on a 15-year fixed mortgage declined slightly to 5.47% from 5.51% last week. A year ago, the 15-year fixed rate averaged 6.52%. According to our mortgage rates tracker, all major lenders decline interest rates on this week based on housing market.
Sam Khater, Freddie Mac’s chief economist, noted that mortgage rates have remained flat as markets await the release of the highly anticipated August jobs report. Despite the decrease in rates over the summer, home sales have not picked up as expected. Many potential buyers and sellers are holding out, hoping for further rate reductions.
While home sales have been slow, there has been an uptick in refinancing activity. This trend is likely driven by the fact that about 80% of current mortgage holders have rates below 5%, making refinancing an attractive option for many.
The housing market remains in a state of uncertainty as both buyers and sellers wait to see if mortgage rates will drop further. The upcoming jobs report could provide some direction, but for now, the market continues to be characterized by hesitation and lackluster sales.