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30-year fixed-rate mortgage average ticks down but expected to stay elevated
The average weekly 30-year fixed rate went lower for a second week in a row, nudging down 0.02% this week to 6.69%. However, that is nearly one percent higher than a year ago and more than double the rate the two years prior to 2022. And, it isn’t expected to come down much in the near future, perhaps even increasing again.
While just one of several factors, elevated mortgage rates are in part why there is suchlimited housing stock available for would-be buyers as those who own are reluctant to sell. That should come as no surprise when four out five homeowners have a mortgage rate of less than 5%. Almost a quarter have a mortgage rate of sub 3% according to Redfin data.
“People who are sitting on the sidelines, waiting for mortgage rates to decline, should know that’s unlikely to happen in the foreseeable future,” says Chen Zhao, Lead Economics Researcher at Redfin.
“If a home that’s in your price range and has everything on your wishlist hits the market, there’s no good reason to wait.”