After Federal Reserve Chairman Jerome Powell announced that his agency was raising rates by 0.25% on February 7 in response to a strong jobs report, mortgage rates started to go back up again.
Freddie Mac reported that, on February 9, the 30-year fixed-rate mortgage (FRM) rate was at 6.12%, up slightly from the previous week of 6.09%. It is also higher than the 52-week average of 5.66%. The 15-year FRM went up sharply from 5.14% on the week ending February 2 to 5.25% the following week. The rate on the week engine February 9 was higher that the four-week average of 5.21% and the 52-week average of 4.89%.
Despite the slight increase in the 30-year FRM, Freddie Mac Chief Economist Sam Khater said the housing market should recover. “Interested homebuyers are easing their way back to the market just in time for the spring homebuying season.”
On Long Island, it may be time for prospective homebuyers to make that purchase, if they don’t mind the higher interest rates. Data from OneKey MLS found that, in Suffolk County, home prices fell by 0.5% at the end of the year to $542,000, compared to $545,000 in November. Nassau’s home price in December was $655,000, a 1.9% drop from November’s price at $667,500.
Mortgage News Daily’s weekly survey reported its 30-year FRM to be 6.18% on the week ending February 8. Although it was a bit lower than the previous week, when it sat at 6.19%, it was much higher than the same week last year at 3.78%. Its weekly survey for the 15-year FRM on the week ending February 8 was 5.64%, an increase over the previous week’s rate of 5.50% and year over year at 3.01%
Whereas Freddie Mac’s outlook was positive, MND laid out a more baleful analysis that was critical of the Fed’s moves. “[T]he Federal Reserve … are as unified as ever when it comes to the belief that the market is just too optimistic about a potential drop in inflation,” the article said. “They’d rather create a bit of economic weakness than go easy on the fight against inflation.”
