Mortgage Rates Drop, But There’s Still Nothing to Buy

Here’s something you aren’t hearing on the news or social media. According to Freddie Mac, mortgage interest rates are the lowest they’ve been since May of last year.

The average rate for a 30-year fixed mortgage is now 6.6%. That represents a decrease of over 1% from October. A 15-year fixed rate loan averages 5.76% nationally.

Last week Fannie Mae’s Economic and Strategic Research (ESR) Group expects rates to drop below 6% by the end of 2024.

While this is good news, housing and multifamily market inventory remains low. A lack of supply and lower interest rates may put upward pressure on prices once again.

In 2023, only 15.5% of the properties available for sale were affordable for the average American household.