The average rate on a 30-year fixed mortgage fell to 6.33% from 6.48% the previous week.
The latest consumer price inflation of 6.45% in December is in the sixth consecutive month of deceleration after peak inflation of 9.1% in June 2022.
There were 223,000 net new jobs in December 2022, and the unemployment rate is at a historic low of 3.5%. Wage growth over the past 12 months was 4.6%.
The 30-year fixed mortgage rate rose to 6.48% from 6.42% in the last week of 2022. Although rates are more than double a year ago, rates will likely stabilize below 6% in 2023.
November 2022's housing market activity declined 7.7% from October 2022, and by 35.4% from November 2021, marking ten consecutive months of home sales declines.
The 30-year fixed mortgage rate decreased to 6.27% from 7.08% six weeks ago. As a result, homeownership has become nearly 10% more affordable in the last six weeks as the monthly mortgage payment decreased to $2,140 for the median-priced home.
Compared to the prior month, the monthly mortgage payment increased by 7.3% while the median family income increased by 0.9%, making home buying less affordable in October.
According to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.
Housing affordability rose about 8% in the last 4 weeks as mortgage rates moved closer to 6%. If inflation continues to slow down, mortgage rates may stabilize near 6% in 2023.
Even with the increasing number of layoffs in some industries, the overall job market remains strong.
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