Mortgage Rates Decline for 9th Straight Week as 2023 Registers Home Affordability Crisis

U.S. mortgage rates dipped for the ninth consecutive week amid expectations of interest rate cuts by the Federal Reserve after elevated rates negatively impacted home affordability in 2023.

The 30-year fixed-rate mortgage rate averaged 6.61 percent for the week ending Dec. 28, according to data from Freddie Mac. This was the ninth consecutive weekly drop in mortgage rate since it peaked at 7.79 percent in late October. “The rapid descent of mortgage rates over the last two months stabilized a bit this week, but rates continue to trend down,” said Sam Khater, Freddie Mac’s chief economist.

“Heading into the new year, the economy remains on firm ground with solid growth, a tight labor market, decelerating inflation, and a nascent rebound in the housing market.”

The elevated mortgage rate over the past year has had a dampening impact on the U.S. housing market.

According to a report by real estate brokerage Redfin, 2023 was one of the least affordable home-buying years on record.

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