Mortgage Rates Drop To Lowest Level Since May

(RTTNews) - Mortgage rates, or interest rates on home loans, dropped to its lowest level in eight months, according to mortgage provider Freddie Mac (FMCC.OB).

The 30-year FRM averaged 6.60 percent as of January 18, 2024, down from last week when it averaged 6.66 percent. A year ago at this time, the 30-year FRM averaged 6.15 percent.

The 15-year FRM averaged 5.76 percent, down from last week when it averaged 5.87 percent. A year ago at this time, the 15-year FRM averaged 5.58 percent.

"Mortgage rates decreased this week, reaching their lowest level since May of 2023," said Sam Khater, Freddie Mac's Chief Economist. "This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale."