\n<\/p>\n
In the first week of 2024, mortgage rates continued to stick around the mid 6% mark.<\/p>\n
The 30-year fixed-rate mortgage averaged 6.62% as of Jan. 4, a slight increase from the 6.61% rate recorded on Dec. 28<\/a>, according to Freddie Mac<\/strong><\/a>\u2018s Primary Mortgage Market Survey released on Thursday. The 15-year fixed-rate mortgage averaged 5.89% this week, down from 5.93% the prior week. HousingWire\u2019s Mortgage Rates Center<\/a> showed Optimal Blue<\/strong>\u2019s average 30-year fixed rate on conventional loans at 6.68% on Thursday, up from 6.56% recorded at the same time last week.<\/p>\n \u201cBetween late October and mid-December, the 30-year fixed-rate mortgage plummeted more than a percentage point,\u201d Freddie Mac Chief Economist Sam Khater said in a statement. “However, since then rates have moved sideways as the market digests incoming economic data.\u201d<\/p>\n Given the expectation of rate cuts this year from the Federal Reserve<\/strong><\/a>, Khater expects mortgage rates to continue drifting downward.<\/p>\n \u201cWhile lower mortgage rates are welcome news, potential homebuyers are still dealing with the dual challenges of low inventory<\/a> and high home prices<\/a> that continue to rise,\u201d he added.<\/p>\n One year ago this week, the 30-year fixed-rate mortgage stood at 6.48%, while the 15-year rate stood at 5.73%.<\/p>\n According to a Realtor.com survey, 11% of surveyed prospective homebuyers said that they would be able to buy a home if rates went below the 7% threshold. Another 12% of surveyed homebuyers said that rates would need to dip below 6% for them to be able to buy a home. Meanwhile, more than a quarter (28%) said rates would need to dip below 4% to bring them into the market. <\/p>\n Currently, the typical outstanding mortgage rate is still under 4%. This discrepancy is not creating any incentive for sellers to sell their homes in the current rate environment, according to Realtor.com <\/strong>Economic Research Analyst Hannah Jones. <\/p>\n However, the cost of buying a home did come down in December, sending an encouraging signal to the market. As per a Redfin<\/a><\/strong> study<\/a>, the median U.S. mortgage payment was $2,361 during the four weeks ending December 31, down $372 (-14%) from October.<\/p>\n According to Bright MLS<\/strong> Chief Economist Lisa Sturtevant, the lack of inventory remains the main issue, keeping home prices elevated.<\/p>\n \u201cYoung buyers are having to delay buying a home as it takes them longer to save for a down payment and they often have to make offers on multiple homes before they are successful,” Sturtevant said. “Many first-time homebuyers have been priced out of the market altogether.\u201d <\/p>\n Sturtevant expects the lack of inventory to remain a challenge this year even as mortgage rates fall.<\/p>\nLower rates attract homebuyers back to the market but difficulties persist<\/strong><\/h2>\n