Mortgage Rates Drop Below Seven Percent

(RTTNews) - Mortgage rates, or interest rates on home loans, dropped below 7 percent mark for the first time since August, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage averaged 6.95 percent as of December 14, 2023, compared to last week when it averaged 7.03 percent. A year ago at this time, the 30-year FRM averaged 6.31 percent.

The 15-year fixed-rate mortgage averaged 6.38 percent, up from last week when it averaged 6.29. A year ago at this time, the 15-year FRM averaged 5.54 percent.

"Potential homebuyers received welcome news this week as mortgage rates dropped below seven percent for the first time since August," said Sam Khater, Freddie Mac's Chief Economist. "Given inflation continues to decelerate and the Federal Reserve Board's current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year."