All April 4, 2024

Mortgage Interest Rates Moving In A Narrow Range

 Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.82 percent.

“Mortgage rates showed little movement again this week, hovering around 6.8 percent,” said Sam Khater, Freddie Mac’s Chief Economist. “Since the start of 2024, the 30-year fixed-rate mortgage has not reached seven percent but has not dropped below 6.6 percent either. While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term. On the plus side, inventory is improving somewhat, which should help temper home price growth.”

News Facts

  • The 30-year FRM averaged 6.82 percent as of April 4, 2024, up from last week when it averaged 6.79 percent. A year ago at this time, the 30-year FRM averaged 6.28 percent.
  • The 15-year FRM averaged 6.06 percent, down from last week when it averaged 6.11 percent. A year ago at this time, the 15-year FRM averaged 5.64 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 day’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 their now 17-week stay in the mid-6% range. While lower interest rates would improve affordability for potential buyers, knowing that those rates have stayed steady may make for a less fraught home shopping experience. Buyers know what to expect, and walking through potential homes remains a financially viable option. For a home buyer purchasing a $400,000 home at the current 30-year mortgage interest rate of 6.82%, with a 20% down payment, the mortgage payment would be $2,090. Down payments offset the mortgage payment. With a 35% down payment, as Older Baby Boomers had last year, the mortgage payment would be $1,698.

Homeowners continue to earn housing equity as home prices continue to increase. Potential sellers weighing the decision to move, even if they currently have a lower mortgage interest rate, may consult with experts to determine the down payment they are able to place on a new home. This calculation could prove favorable for many, especially if their home no longer works with a family or job change.