Mortgage Rates Continue To Drop

The 30-year fixed-rate mortgage averaged 6.63% as of Feb. 1, according to the Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC). This is down last week when it averaged 6.69%, and it is up from the 6.09% average of one year ago at this time.

The 15-year fixed-rate mortgage averaged 5.94%, down from last week when it averaged 5.96%. A year ago at this time, it averaged 5.14%.

“Although affordability continues to impact homeownership, the combination of a solid economy, strong demographics and lower mortgage rates are setting the stage for a more robust housing market,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates have been stable for nearly two months, but with continued deceleration in inflation we expect rates to decline further. The economy continues to outperform due to solid job and income growth, while household formation is increasing at rates above pre-pandemic levels. These favorable factors should provide strong fundamental support to the market in the months ahead.”