All January 11, 2024

Mortgage Rates Hovering at 6.66%

Freddie Mac today  (01-11-2024) released the results of its Primary Mortgage Market Survey® , showing the 30-year fixed-rate mortgage (FRM) averaged 6.66 percent.

“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,” said Sam Khater, Freddie Mac’s Chief Economist. “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.”

  • The 30-year FRM averaged 6.66 percent as of January 11, 2024, up from last week when it averaged 6.62 percent. A year ago at this time, the 30-year FRM averaged 6.33 percent.
  • The 15-year FRM averaged 5.87 percent, down from last week when it averaged 5.89 percent. A year ago at this time, the 15-year FRM averaged 5.52 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.

Here’s Reaction to today’s rate news from Dr. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.

Mortgage interest rates continue to hold steady at 6.66% this week. As mortgage interest rates have been flat since December 21, home buyers can plan smartly as they enter the buying market.  Potential buyers know the homes they view are within their price range without any expected large swings.

For a $400,000 home (between the median of an existing home and a new home), a buyer would be paying $2,056 for a monthly mortgage payment. While this assumes a downpayment of 20%, the typical downpayment for a recent first-time buyer was 8%, and the typical downpayment for a repeat buyer was 19%. This would change the monthly mortgage payment for those buyers who did not place 20% down.

While more buyers are expected to enter the market in spring as mortgage interest rates decline, bidding wars could intensify in a limited housing inventory environment. These bidding wars are likely to push home prices up in some areas. Even last year, as mortgage interest rates were higher and there were fewer buyers, the most difficult task for home buyers was finding the right home. REALTORS® play a critical role in helping buyers with negotiations and in finding the buyer the right home.