The average mortgage rate for a 30-year fixed loan fell four basis points last week to 2.73%, according to Freddie Mac’s Primary Mortgage Market Survey. This is the second week mortgage rates have ticked downwards since Jan. 14’s sudden jump.
The 15-year fixed mortgage rate also shifted downward to 2.2 from 2.21 the week prior.
With last week’s data now in, mortgage rates have hovered below 3% for six months, and housing affordability is feeling the strain. Home prices in November rose 9.5% nationally over the same time last year, according to the S&P CoreLogic Case-Shiller index.
November home price numbers were buoyed by record-low mortgage rates, said Matthew Speakman, economist at Zillow. With ultra-low rates in place, a wave of eager would-be homebuyers flooded the market, further stoking the already-intense competition for homes.
Sam Khater, Freddie Mac’s chief economist, is concerned about rising home prices.