Freddie Mac: High mortgage rates continue to weaken the housing market

Freddie Mac released the results of its Primary Mortgage Market Survey® today showing the 30-year fixed-rate mortgage averaged 6.48 percent.

The PMMS showed:

• 30-year fixed-rate mortgage averaged 6.48 percent as of January 5, 2023, up from last week when it averaged 6.42 percent. A year ago, the 30-year FRM averaged 3.22 percent.
• 15-year fixed-rate mortgage averaged 5.73 percent, up from last week when it averaged 5.68 percent. A year ago, the 15-year FRM averaged 2.43 percent.

“Mortgage application activity sunk to a quarter century low this week as high mortgage rates continue to weaken the housing market,” said Sam Khater, Freddie Mac’s chief economist. “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market,” said Khater. “Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.

Freddie Mac was created by Congress in 1970 and aims to make housing more accessible and affordable for homebuyers and renters in communities nationwide.

For more information, visit FreddieMac.com