This week, mortgage rates continued their downward trend, coinciding with a surge in demand for home purchases.

However, persistently high home prices pose a significant obstacle for many prospective buyers.

According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate for the 30-year fixed-rate mortgage dropped to 7.03% this week, a decrease from 7.22% the previous week but an increase from 6.33% a year ago.

The rate for a 15-year fixed mortgage also saw a decline, averaging 6.29% compared to 6.56% last week and 5.67% a year ago, Fox Business reported.

Despite a five-week consecutive rise in mortgage applications, elevated mortgage rates have tempered consumer demand over the past year, leading to a substantial constraint on inventory.

Sellers, who secured lower mortgage rates before the pandemic, have been hesitant to sell amid rates persistently hovering near a two-decade high, leaving limited options for eager potential buyers.

Written by B.C. Begley

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