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Mortgage Rates See Biggest Weekly Decline Since 1981

The 30-year fixed-rate mortgage averaged 6.61% as of Nov. 17

The 30-year fixed-rate mortgage averaged 6.61% as of Nov. 17, according to data released by Freddie Mac FMCC, 1.38% Thursday, lower than the 7.08% rate seen last week. It was the biggest weekly decline since 1981.

Still, the 30-year was averaging at 3.10% at this point last year. 

“Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,” Sam Khater, chief economist at Freddie Mac, said in a statement. “While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market. Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”

The 15-year fixed-rate mortgage averaged 5.98% this week, also lower than last week’s 6.38%. 

Mortgage applications, however, were up 2.7% on a seasonally adjusted basis for the week ending Nov. 11 when compared to the week prior, according to a Mortgage Bankers Association survey published Wednesday. 

This week, Freddie Mac also used new methodology in its Primary Mortgage Market Survey to include “more detailed data and monitor real-time mortgage rates more closely,” according to a statement.

The yield on the 10-year Treasury note TMUBMUSD10Y, 3.811% was at 3.77% around noon in New York City on Wednesday. 

Source: marketwatch.com