As the new year kicks off, the 30-year fixed-rate mortgage is holding steady at just under 7 percent. The robust economy has driven mortgage rates upward, and when combined with high home prices, housing affordability continues to be a challenge. The ongoing shortage of entry-level homes further complicates matters, particularly for prospective first-time buyers.

According to Freddie Mac, this week, the 30-year fixed-rate inched up 0.02 basis points, bringing the U.S. weekly average to 6.93%. One year ago, the rate was 6.66%.

Mortgage rates are influenced by movements in the bond market, which today operated on a shortened schedule due to the federal day of mourning for Jimmy Carter. Consequently, market volume and volatility were limited. Nonetheless, overnight market movements allowed the average lender to offer a slight improvement compared to yesterday.

Hope Remains

As homebuyers navigate through higher interest rates, a 2-1 buydown is an excellent solution. With this product, borrowers can now benefit with a lower rate with costs paid by the seller, negotiated by the buyer agent. This buydown reduces the interest rate on the mortgage by 2% in the first year and by 1% in the second year, providing significant savings for borrowers during the initial years of their loan. When rates drop, the mortgage can be refinanced.

Why Blue Reef Mortgage

At Blue Reef Mortgage, we’re here to support your clients every step of the way, from pre-approval to home shopping and financing. Please feel free to reach out if there’s any way we can assist you and your clients.

At Blue Reef Mortgage, we’re your one-stop shop for everything from pre-approval to home shopping and financing. Call us today!

Blue Reef Mortgage is your local mortgage broker offering low in-market rates and personalized service.

NMLS 1428917

Don’t wait—let’s get you prequalified today!