US mortgage rates ended 2023 more than 1 percentage point below their recent peak, buoying the domestic housing market going into the new year.
6.76%Average US 30-year fixed-rate mortgage, end of 2023
The 30-year fixed-rate mortgage ended 2023 at 6.76 per cent, down from the 7.9 per cent hit in October, the Mortgage Bankers Association said on Wednesday.
“The recent decline in rates has given the housing market some cause for optimism going into 2024,” said MBA chief economist Joel Kan. There has been “a limited supply of homes for sale”, he added, “but recent strength in new residential construction will continue to help ease inventory shortages”.
However, mortgage applications have not picked up in response to lower rates, ending 2023 down 12 per cent from a year earlier.