Mortgage rates continue to drop over last couple months

Rates are down from a high in October, but limited inventory is keeping prices high.
Home For Sale Real Estate Sign in Front of New House.

Mortgage rates have reached their lowest level since May, according to data released by Freddie Mac.

The big picture: The rate on the 30-year fixed mortgage decreased from 6.67% to 6.61% from the week before. 


  • Rates have fallen for the ninth consecutive week and have dropped over a full point from 7.79% in October.
  • While the decline in rates should theoretically benefit potential homebuyers, the limited inventory of existing homes on the market poses affordability challenges.

Driving the news: Mortgage rates have remained steady, tracking the yield on the 10-year Treasury, after the Federal Reserve decided to hold its benchmark rate steady in December.

  • The National Association of Realtors forecasts rates to average 6.3% in 2024, while predicts rates to average 6.8% for most of the year before decreasing to 6.5% by year-end.
  • Homebuyers have been slow to respond to the decline in rates during the holiday season, but a stronger response is expected in the new year if rates remain low.
  • In November, there was a 7.5% increase in newly listed homes on the market compared to the previous year, indicating potential increased activity from sellers.
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