Mortgage Rates Drop Again, Opening Up Affordability

By Dean Seal

Mortgage rates edged lower again this week, potentially making mortgages attainable for millions of prospective homebuyers who were unable to afford them when rates peaked in the fall.

In the week ending Thursday, the average rate on a 30-year fixed-rate mortgage fell to 6.09% from 6.13% the prior week. A year ago, the average rate was 3.55%.

Average 15-year rates fell to 5.14% from 5.17% last week, Freddie Mac said. A year ago, the 15-year fixed-rate mortgage rate averaged 2.77%.

"Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent," said Sam Khater, Freddie Mac's chief economist. "According to Freddie Mac research, this one-percentage-point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price."

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 02, 2023 12:14 ET (17:14 GMT)

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