Freddie Mac's latest Primary Mortgage Market Survey reveals that the 30-year fixed-rate mortgage (FRM) has decreased to an average of 7.09%, a drop from last week's 7.22%. This slight decrease marks the first reduction in rates since March 2024, following a steady rise over the past five weeks.
According to Sam Khater, Freddie Mac’s Chief Economist, this change is primarily due to a "weaker than expected jobs report," which influenced mortgage rates to tick down slightly. Khater noted that the persistence of rates above seven percent continues to influence both the buying and selling sides of the market. Many homeowners are reluctant to sell and lose the lower mortgage rates they currently enjoy, which contributes to a tightened supply and keeps house prices high. This situation poses significant affordability challenges for prospective homebuyers in what remains a high-rate environment.
The 15-year FRM also saw a decrease this week, averaging 6.38%, down from 6.47% last week. This time last year, the 15-year FRM averaged 5.75%, highlighting a notable increase over the annual period.
