Mortgage Rates Drop, But Remain Above 7% Mark

The 30-year fixed-rate mortgage averaged 7.12% as of Sept. 7, according to the Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC). This is a decline from last week when it averaged 7.18%. A year ago at this time, it averaged 5.89%.

“For the fourth consecutive week, the 30-year fixed-rate mortgage hovered above 7%,” said Sam Khater, Freddie Mac’s chief economist. “The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers.”

Freddie Mac also reported the 15-year fixed-rate mortgage averaged 6.52% as of Sept. 7, down from last week when it averaged 6.55%. A year ago at this time, it averaged 5.16%.