US Mortgage Rates Drop to Lowest Level Since June

Despite Lower Rates, Housing Market Remains Least Affordable Since 1980s

Mortgage rates in the US have dropped to their lowest level since June, with the 30-year fixed-rate mortgage rate falling to an average of 6.67% in the week ending December 21, 2023.
The Federal Reserve's anticipated rate cuts beginning in 2024 are causing the decline in mortgage rates.
Despite the drop in rates, the housing market remains the least affordable since the 1980s due to high home prices and a lack of inventory.
Experts predict that the average fixed-rate mortgage rate will fall to 6.2% by the end of 2024, improving affordability for homebuyers.
However, the lack of affordable homes on the market continues to be a significant obstacle for potential buyers, particularly first-time homebuyers.