Tuesday, May 30, 2023

Uncertainty over the US debt ceiling makes mortgage rates more expensive

Freddie Mac has released the results of its first Mortgage Market Survey (PMMS), with data showing that the US real estate market remains difficult, with the 30-year mortgage rate (FRM) at about 6.57%, a higher figure than last week.

“The US economy is showing continued resilience which, along with debt ceiling concerns, has led to higher mortgage rates this week,” said Sam Khater, Freddie Mac’s chief financial officer.

“Reduced affordability continues to be a factor for homebuyers, and homeowners seem unwilling to lose their low rate and their home on the market,” added Khater.

Freddie Mac notes that if this situation continues to control supply, an opportunity could be opened for builders to help the country’s housing shortage.

The reporter said buyers continue to find their home inventory low, prices high and mortgage rates high, leaving many frustrated in their search.

Thus were the rates;

30-year mortgage;

A 30-year fixed rate mortgage averaged 6.57% as of May 25, 2023, up from an average of 6.39% last week. A year ago at this time, the 30-year FRM averaged 5.10%.

15-year mortgage;

The 15-year mortgage averaged 5.97%, up from last week’s average of 5.75%. Last year at this time, the 15-year FRM averaged 4.31%.

PMMS is a fully amortizing, conforming, conventional home purchase loan for borrowers with a 20% down payment and excellent credit.

Keep reading:
· Housing: Learn the best and worst places to rent in the US.
· More expensive housing: 30-year mortgage rate reversed trend from last week
· What is the outlook for households in the New York metropolitan area in 2023?

Nation World News Desk
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