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The average interest rate for a 30-year fixed-rate mortgage declined by 8 basis points on a weekly basis and hit its lowest level since September 2022.
Recent inflation trends along with the strong jobs report for January “suggest the lower likelihood of a rate cut” at the next Federal Open Market Committee meeting, according to Joel Kan, a vice president and deputy chief economist at the Mortgage Bankers Association.
The Federal Reserve will soon issue proposals revising capital requirements set under the Basel framework in a way that could increase bank involvement in mortgage originations and servicing.
Fannie projects that the average interest rate on a 30-year fixed-rate mortgage will hold at 6.1% in the second quarter before declining to 6.0% in the third quarter and then remain at that level through the end of 2027.
Delinquencies continue to rise but industry participants stress there’s no cause for concern. They pointed to a change in FHA loss-mitigation policies during the fourth quarter and “market recalibration.” (Includes two data tables.)