Average long-term US mortgage rate comes back down this week

Jan 11, 2023, 7:00 PM | Updated: Jan 12, 2023, 9:20 am
File - A for sale sign is posted on a home in Philadelphia, Wednesday, Jan. 4, 2023. On Thursday, F...

File - A for sale sign is posted on a home in Philadelphia, Wednesday, Jan. 4, 2023. On Thursday, Freddie Mac reports on this week's average U.S. mortgage rates. (AP Photo/Matt Rourke, File)

(AP Photo/Matt Rourke, File)

WASHINGTON (AP) — After two straight weekly increases, the average long-term U.S. mortgage rate came back down again this week but remains a significant hurdle for many prospective homebuyers.

Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate fell to 6.33% from 6.48% last week. A year ago the average rate was 3.45%.

The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to boost its key lending rate in its quest to cool the economy and tame inflation.

At its final meeting of 2022, the Federal Reserve raised its rate 0.50 percentage points, its seventh increase last year. That pushed the central bank’s key rate to a range of 4.25% to 4.5%, its highest level in 15 years.

Though another report Thursday showed that inflation at the consumer level eased to 6.5% in December — a sixth straight monthly decline — Fed officials have signaled that they may raise the central bank’s main borrowing rate another three-quarters of a point in 2023, which would be in a range of 5% to 5.25%.

The big increase in mortgage rates during the past year has tripped up the housing market, with sales of existing homes falling for 10 straight months to the lowest level in more than a decade.

Though home prices have retreated as demand has declined, they are still nearly 11% higher than a year ago. Higher prices and a doubling of mortgage rates have made homebuying much less affordable for many people.

Rates for 30-year mortgages usually track the moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Federal Reserve does with interest rates can also influence the cost of borrowing for a home.

The rate for a 15-year mortgage, popular with those refinancing their homes, also fell this week, to 5.52% from 5.73% last week. It was 2.62% one year ago.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - A help wanted sign is displayed at a restaurant in Arlington Heights, Ill., Monday, Jan. 30,...
Associated Press

More Americans apply for jobless benefits last week

More Americans filed for jobless benefits last week, but layoffs remain historically low despite attempts by the Federal Reserve to cool the economy, and hiring, to bring down inflation. Applications for jobless aid in the U.S. for the week ending Feb. 4 rose by 13,000 last week to 196,000, from 183,000 the previous week, the […]
1 day ago
Associated Press

Eritrean leader dismisses as ‘fantasy’ alleged Tigray abuses

NAIROBI, Kenya (AP) — Eritrea’s president in rare public comments has dismissed as “a fantasy” allegations that his country’s forces carried out rape, looting and other abuses in the war in neighboring Ethiopia’s Tigray region. President Isaias Afwerki, the only leader Eritrea has known in its 30 years since independence, spoke to journalists Thursday during […]
1 day ago
FILE - A sign at Twitter headquarters is shown in San Francisco, Dec. 8, 2022. New research shows c...
Associated Press

EU calls out Twitter for incomplete disinformation report

LONDON (AP) — Twitter failed to provide a full report to the European Union on its efforts to combat online disinformation, drawing a rebuke Thursday from top officials of the 27-nation bloc. The company signed up to the EU’s voluntary 2022 Code of Practice on Disinformation last year — before billionaire Tesla CEO Elon Musk […]
1 day ago
European Council President Charles Michel, front right, speaks with Ukraine's President Volodymyr Z...
Associated Press

Zelenskyy: Ukraine intercepted plans to destroy Moldova

BRUSSELS (AP) — Ukrainian President Volodymyr Zelenskyy said Thursday that his country has intercepted plans by Russian secret services to destroy Moldova Speaking to European Union leaders in Brussels, Zelenskyy said he recently told Moldovan President Maia Sandu about the alleged scheme. “I have informed her that we have intercepted the plan of the destruction […]
1 day ago
Associated Press

FTX founder keeps talking, ignoring typical legal strategy

NEW YORK (AP) — For federal prosecutors, Sam Bankman-Fried could be the gift that keeps on giving. After the November collapse of FTX, the cryptocurrency exchange he founded in 2019, Bankman-Fried unexpectedly gave a series of interviews intended to present his version of events. He was indicted in December and charged with perpetrating one of […]
1 day ago
FILE - In this Tuesday, Oct. 1, 2013, file photo, lawmaker of the extreme far-right Golden Dawn par...
Associated Press

Far-right party banned from upcoming election in Greece

ATHENS, Greece (AP) — Greece’s parliament has banned a far-right political party led by a jailed former lawmaker from participating in the general election later this year. Parliament published the text of a legislative amendment Thursday that will disqualify the Greek National Party on the grounds that its leader has been convicted of a serious […]
1 day ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Average long-term US mortgage rate comes back down this week