Source: Forbes —
Mortgage rates have dipped for a fourth straight week, notching their biggest extended decline in 14 years. Despite the tumbling rates, demand for loans remains weak, with homebuyers looking for more incentives to jump back into the market.
The average 30-year, fixed-rate mortgage fell to 6.33% as of December 8, down from 6.49% a week earlier, according to mortgage giant Freddie Mac. Rates have been sagging because of increasing concerns about lackluster economic growth, says Sam Khater, chief economist at Freddie Mac.
“Over the last four weeks, mortgage rates have declined three-quarters of a point, the largest decline since 2008,” Khater said in a statement.
Though 30-year mortgage rates have been falling after hitting 20-year highs, they’re more than double what they were last year at this time, when the average was 3.10%.
The 15-year, fixed-rate mortgage is averaging 5.67% in Freddie Mac’s December 8 survey, down from 5.76% the previous week but up from 2.38% a year ago.
The rates above don’t include the fees called “points” or other costs associated with obtaining home loans.
Mortgage Rates Forecast Into 2023
Even as the typical 30-year fixed mortgage rate has cooled from its 20-year high of 7.08% in October and November, more is needed to motivate home shoppers to reenter the market. In its latest update, the Mortgage Bankers Association said mortgage demand was soft during the week ending December 2.