Mortgage rates dropped for two weeks in a row at the end of November. The 30-year fixed was at 6.58% but still higher than the same time last year at 3.10%. According to Freddie Mac, mortgage rates have been rising for most of 2022. 
“This volatility is making it difficult for potential homebuyers to know when to get into the market, and that is reflected in the latest data which shows existing home sales slowing across all price points,” said Sam Khater, Freddie Mac’s chief economist.
The average mortgage rate is determined by the number of applications for mortgages that Freddie Mac receives. The rates are released by Freddie Mac weekly but were released early in November due to Thanksgiving.
“Following generally higher mortgage rates throughout the course of 2022, the recent swing in buyers’ favor is welcome and could save the buyer of a median-priced home more than $100 per month relative to what they would have paid when rates were above 7% just two weeks ago,” said Danielle Hale, Realtor.com’s chief economist.
“A long-term housing shortage is keeping home prices high, even as the number of homes on the market for sale has increased, and buyers and sellers may find it more challenging to align expectations on price,” she said.
“New home sales beat expectations, but a reversal of the general downward trend is doubtful for now given high mortgage rates and builder pessimism,” said Robert Frick, corporate economist at Navy Federal Credit Union.
