Mortgage Rates

Moving in the Right Direction — Mortgage rates ended the year on a positive note. As of December 31, the average 30-year fixed-rate mortgage was 6.15%, down slightly from the previous week and noticeably lower than one year ago, when rates averaged 6.91%.

Freddie Mac Primary Mortgage Market Survey®. Rates based on 30-year fixed-rate mortgage.

Homes Prices

Cooling, Not Falling — Home price growth is slowing as we move through the winter months, but prices continue to rise overall. In November, the median existing-home price reached $409,200, up 1.2% compared to one year ago. While higher prices remain a challenge for many buyers, improving affordability has helped offset some of that pressure. Rising household incomes and easing mortgage rates this fall have made monthly payments more manageable for some buyers, even as prices remain elevated.

Housing Supply

Buyers Favored — Housing supply continues to favor buyers in many markets. In November, there were significantly more sellers than buyers nationwide, creating some of the strongest buyer-friendly conditions seen in over a decade. While the number of homes for sale dipped slightly month over month as winter approached, overall inventory remains higher than last year. Many buyers are finding more options to choose from, and in many cases, more room to negotiate on price or seller concessions.

Market Activity

Cooling Temps, Cooling Market — Market activity softened as the year came to a close, which is typical heading into the winter months. Buyer activity declined in November and homes are also taking a bit longer to sell. In November, the typical home spent 64 days on the market, about three days longer than this time last year, giving buyers more time to make decisions and explore their options.