Mortgage Rates Drop Slightly

Mortgage rates slid down again this week, according to Freddie Mac. However, they remain higher when compared to last year. Potential homebuyers have been watching rates closely and are waiting to come off the sidelines, said Freddie Mac.  The average 30-year fixed-rate mortgage this week is 6.67 percent which is down 0.02 percent from last week.  A year ago the rate was 0.86 percent lower.

However, inventory challenges persist as the number of existing homes on the market remains low.  One of the reasons for the low inventory is that those who obtained mortgages in the 3 percent range from a couple of years ago are reluctant to move and take on a mortgage at the higher rates. The recent rebound in single-family housing starts is an encouraging development that will hopefully extend through the summer, it noted.