For the week ending January 5, 30-year rates rose to 6.48% from 6.42% the week before.

Rates continued to inch higher as the year ended and the new year began – however, they decreased after the survey was released. For the week ending January 5, 30-year rates rose to 6.48% from 6.42% the week before. In addition, 15-year loans increased to 5.73%. A year ago, 30-year fixed rates averaged 3.22%, more than 3.0% lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac, “Mortgage application activity sunk to a quarter century low this week as high mortgage rates continue to weaken the housing market. While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023. Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market. Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Current Indices for Adjustable Rates
Updated January 6, 2023