Good News: 30-Year Mortgage Rates Inch Downward
According to the latest report from Freddie Mac, mortgage rates fell this week. A 30-year fixed-rate mortgage averaged 6.33%, down from 6.48% last week.
15-year fixed-rate mortgages are also down, now 5.52%, down from 5.73% last week.
Sliding mortgage rates at the end of 2022 boosted consumer confidence in the housing market. A recent Fannie Mae survey showed that 21% of respondents said they believe now is a good time to buy a home, an increase from 16% last fall.
On another positive note, wage growth and consumer prices are showing signs of easing up, helping to put downward pressure on rates.
Market analysts are waiting to see what will happen at the next Fed Federal Open Market Committee Meeting, scheduled for January 31 and February 1, where another rate hike is expected to be announced. It's uncertain whether the central bank will go for a 0.50 hike or a less aggressive 0.25 increase.
The latter would signal that the Feds are closer to achieving its price stability goals and would slow future rate increases.