Fri Dec 06 11:20:00 UTC 2024: ## Mortgage Rates Fall to Lowest Point in Over a Month, Sparking Increased Homebuyer Demand
**Washington, D.C.** – Mortgage rates have dropped for the second week in a row, reaching their lowest point in over a month, according to Freddie Mac’s Primary Mortgage Market Survey. This decline has spurred a noticeable increase in purchase applications, signaling a resurgence in pent-up demand within the housing market.
The average rate on a 30-year fixed-rate mortgage fell to 6.69%, down from 6.81% the previous week and significantly lower than the 7.03% recorded a year ago. The 15-year fixed-rate mortgage also saw a decrease, dropping to 5.96% from 6.10% last week.
Freddie Mac Chief Economist Sam Khater attributed the increased demand to even this modest rate reduction, highlighting the ongoing affordability challenges in the housing market. The responsiveness of buyers underscores the sensitivity of the market to interest rate fluctuations. The current situation contrasts with earlier this year when a Zillow survey indicated that approximately 80% of mortgage holders had rates below 5%.
While many potential buyers and sellers remain on the sidelines, hoping for further rate decreases, this recent drop marks a significant development in the housing market, suggesting that even small shifts in interest rates can significantly impact buyer activity. Realtor.com Chief Economist Danielle Hale is expected to further analyze these trends and the implications for buyers versus renters in upcoming reports.
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