According to Freddie Mac's latest Mortgage Market Survey, the 30-year fixed-rate mortgage in the U.S. remained unchanged for the third consecutive week in late January 2019.
Sam Khater, Freddie Mac's chief economist, says, "Mortgage rates have stabilized during the last month and are essentially at the same level as last spring - yet the most recent home sales are roughly half a million lower over the same period. Given that the economy remains on solid footing and weekly mortgage purchase application activity has been strong so far in 2019, we expect the decline in home sales to moderate or even reverse over the next couple of months."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.45 percent with an average 0.4 point for the week ending January 24, 2019, unchanged from last week. A year ago at this time, the 30-year FRM averaged 4.15 percent.
15-year FRM this week averaged 3.88 percent with an average 0.4 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 3.62 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.90 percent with an average 0.3 point, up from last week when it averaged 3.87 percent. A year ago at this time, the 5-year ARM averaged 3.52 percent.
Sales of new homes in all four major U.S. regions significantly declined in the last two months of 2018. The year-over-year trend was especially drastic in the Northeast, where new-home sales fell by 16.1 percent in December.
Annual U.S. home value growth slowed in more than half of the nation's largest housing markets since this time last year. Seattle and San Jose, Calif., saw the biggest declines in appreciation over the past year.
Home-value growth in the U.S. is slowing, home price cuts are more common and for-sale inventory is up. Sounds like relief is imminent for home buyers, right? Not so fast. Mortgage rates have been steadily climbing for the past two years.
According to Zillow's November Real Estate Market Report, after nearly four years of annual declines in inventory, the number of homes for sale has now increased year-over-year for three straight months.
A handful of metro areas that spent the past year competing for Amazon's second headquarters - including Washington, D.C., one of the winners - are expected to see their home-value growth outpace the nation in the coming year.