Mortgage Rates Drop, But Stays Above 7% Mark

(RTTNews) - Mortgage rates, or interest rates on home loans, dropped slightly from last week, however, continues above 7 percent mark, 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 7.12 percent as of September 7 2023, down from last week when it averaged 7.18 percent. A year ago at this time, the 30-year FRM averaged 5.89 percent.

The 15-year fixed-rate mortgage averaged 6.52 percent, down from last week when it averaged 6.55 percent. A year ago at this time, the 15-year FRM averaged 5.16 percent.

"For the fourth consecutive week, the 30-year fixed-rate mortgage hovered above seven percent," 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."