Homebuyers find opportunity in declining mortgage rates: Freddie Mac

The average rate for a 30-year fixed-rate mortgage dropped to 6.32% for the week ending March 30, according to Freddie Mac’s Primary Mortgage Market Survey. That's down from the previous week when it averaged 6.42%. Mortgage rates, however, remained well above last year when it was 4.67%.

The average rate for a 15-year mortgage was 5.56% last week, down from 5.68% the week before and up from 3.83% last year.

Mortgages may be harder to get this spring, economist says

The Federal Reserve acknowledged that recent instability in the banking sector could spur further tightening of credit. This would make it harder and more expensive to borrow money but could help push the economy in the direction of slower growth and toward the Fed's inflation target.

The Fed raised rates by 25 basis points at its latest meeting, bringing the federal funds rate to a targeted range of 4.75% to 5%, the highest level in 15 years. Fed Chair Jerome Powell said that the central bank remains committed to bringing inflation, which is currently at 6% to a 2% target rate.

Low inventory is another challenge for buyers

Homebuyers may also find that low housing supply could be another challenge this spring, according to a recent Realtor.com report. Homes newly listed for sale in March decreased by 20.1% compared to the same time last year and new listings remain 29.7% below pre-pandemic 2017 to 2019 levels, the report said. A limited housing supply could challenge buyers looking for a bargain this spring buying season.

https://www.foxbusiness.com/personal-finance/mortgage-rates-drop-opportunity-freddie-mac