Mortgage rates continued to fall as banking concerns still linger in financial markets, according to the weekly survey from Freddie Mac.
- 30-YR FRM: Averaged 6.32% for the week ending March 30th, down 10 basis points from last week and now down 41 basis points in three weeks.
- 15-YR FRM: Averaged 5.56% for the week ending March 30th, down 12 basis points from last week and is now down 39 basis points in three weeks. Rates are 173 basis points higher than one year ago.
NOTE: For the first time since April 11th 2022, the annual spread on the 30-year has fallen under 200 bips to 165 basis points.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, said affordability and inventory remain the biggest problems for homebuyers. “Overall, consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out. However, rate-sensitive sectors, such as housing, continue to be adversely affected. As a result, would-be homebuyers continue to face the compounding challenges of affordability and low inventory.”