Mortgage rates started 2023 right where they left off in 2023, according to the latest weekly survey from Freddie Mac.
- The 30-Year fixed average 6.48% to start the year, this 6 basis points higher than last week and is at the highest level since December 1st when rates hit 6.49%. The 30-year is now 326 basis points higher today than at the start of 2022.
- The 15-year fixed mortgage averaged 5.73%, this is up from last week when it averaged 5.68% and is up 330 basis points when compared to last year.
Analysis. Sam Khater, Freddie Mac’s chief economist, said mortgage activity had fallen to a quarter century low. However, he was optimistic about the future. “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. Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”