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Freddie Mac Mortgage Rates – December 22nd2022 year
What happened to mortgage rates this week:
Freddie Mac’s 30-year fixed rate continued to decline from last week, down a modest 4 basis points to 6.27%, even as the 10-year Treasury rose last week. Investors welcomed this week’s consumer confidence data, which hit an 8-month high. And while markets await tomorrow’s CPI numbers, the expectation is that they will reflect the moderation in the CPI and point to a slowdown in inflation. While the economy is not entirely out of the question, a further slowdown in inflation would be welcome news for equity markets looking for more certainty about the direction of next year.
What does it mean:
Today’s mortgage rates are keeping home buyers and sellers on the defensive. Monthly payments for a median-priced home are now more than $2,000, up 64% from a year ago — when prices were rising at double-digit rates but interest rates were less than half what they are today. First-time homebuyers struggle with high consumer prices, property values and interest rates, which drive savings rates to very low levels and delay their ability to raise enough for a down payment. At the same time, current homeowners looking for their next home are finding that the prospect of higher prices and, in many cases, doubling or tripling their current interest rate, is forcing them to rethink their decision.
This combination translates into a significant drop in real estate transactions as of this week Reducing existing home sales data exhibited. A large number of homebuyers find their path to home ownership temporarily blocked by financial barriers. Not surprisingly, the search for affordability leads many Low cost subway, where the cost of the house can fit into the budget of more families. Markets such as Manchester, NH, Columbus, Ohio, Fort Wayne, Ind., Hartford, Conn., Lancaster, Penn., or Topeka, Kan. Still seeing homes flip as buyers from more expensive areas are drawn by strong local economies and median prices that in some cases are still below $300,000.
Giorgi Ratiu
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