There may still be hope for homebuyers: Mortgage rates appear to be trending downward.
Freddie Mac reported that mortgage rates fell for a third straight week as inflation eased and demand for mortgages dwindled. Housing starts and planned home sales have declined over the past two months.
“Lower mortgage rates and a gradually improving supply of housing bode well for the housing market,” said Sam Carter, chief economist at Freddie Mac. “Prospective homebuyers should remember that mortgage rates can vary widely from lender to lender, so it’s important to shop around for the best mortgage rate.”
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The 30-year fixed rate mortgage (FRM) averaged 6.87% as of June 20, down from an average of 6.95% last week. At the same time a year ago, the average 30-year fixed rate mortgage was 6.67%.
The average yield on a 15-year fixed-rate mortgage was 6.13%, down from last week’s average yield of 6.17%. The average yield on a 15-year fixed-rate mortgage at the same time a year ago was 6.03%.
Meanwhile, Freddie Mac is proposing to add a product that would allow homeowners to tap into the equity in their homes without giving up their low-interest mortgages. The proposed new loans would essentially be second mortgages and would have a fixed interest rate.
The Urban Institute says the loans could be a cost-effective alternative to cash-out refinancing given today’s high interest rates.
Mark HuffmanReporter
Mark Huffman has been a consumer news reporter for ConsumerAffairs since 2004. He covers real estate, gasoline prices and the economy and has reported extensively on negative option selling. He previously worked as a reporter and editor for The Associated Press in Washington, D.C., and was a correspondent for Westwood One Radio Networks and Marketwatch.
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