Mortgage Rates Dip Slightly Amid Quiet Economic Data
Mortgage rates have edged down again this week, as the volume of economic data releases remained subdued. According to Freddie Mac, the average 30-year fixed-rate mortgage stood at 6.85% through Wednesday, lower than the previous week's 6.87%. Similarly, the average 15-year mortgage rate declined from 6.09% to 6.04%.
Despite the recent downward trend, mortgage rates remain elevated at around 7%, straining affordability for many aspiring homeowners. As a result, mortgage applications for home purchases have dropped 6% weekly, while refinancing applications have declined 7%. The Mortgage Bankers Association (MBA) reports that applications are currently at their lowest level for the year.
"Many prospective homebuyers are holding out for improvements in supply and affordability before entering the market," said Bob Broeksmit, MBA President and CEO.
However, Freddie Mac's Chief Economist Sam Khater expressed optimism, noting that rates have stayed below 7% for a fifth consecutive week. "This stability is encouraging for buyers and sellers as we head into the traditionally active spring homebuying season," he stated.
The lack of significant economic data releases this week has allowed investors to absorb last week's inflation data. As a result, 10-year Treasury yields, which closely correlate with mortgage rates, have remained relatively unchanged around 4.5%.