(KERO) — Mortgage rates kicked off 2023 twice as high as they were a year ago.
According to Freddie Mac, the 30-year fixed rate mortgage averaged 6.48 percent in the week, ending on Thurs, Jan 5. A year ago, the 30-year-fixed rate was 3.22 percent.
Mortgage rates rose throughout most of last year, propelled by the Federal Reserve's harsh interest rate hikes in an effort to tame soaring inflation. Rates dropped in November and December after data showed inflation may have reached its peak. Now, potential buyers are hesitant to get into the market because there are fewer homes available to buy.
Freddie Mac's Chief Economist says there is some good news though, saying "inflationary pressures are easing and should lead to lower mortgage rates this year."
