Mortgage rates decline for another week as inflation eases

Mortgage rates in the United States continue to decline, slackening off after a continued sharp spike amid Federal Reserve hikes and spiraling inflation. 

Thirty-year fixed rates "averaged 6.15 percent as of January 19, 2023, down from last week when it averaged 6.33 percent," Freddie Mac said in its weekly mortgage report on Thursday.

"As inflation continues to moderate, mortgage rates declined again this week,” Sam Khater, Freddie Mac’s chief economist, said in the report. “Rates are at their lowest level since September of last year, boosting both homebuyer demand and homebuilder sentiment."

"Declining rates are providing a much-needed boost to the housing market, but the supply of homes remains a persistent concern," Khater added. 

Fifteen-year rates also declined over last week, dropping from 5.52% to 5.28%. 

The Federal Reserve last year began sharply raising interest rates in an effort to combat hugely spiraling inflation throughout the United States. 

In an interview with the Associated Press this week, Cleveland Federal Reserve President Loretta Mester said that the country was  "beginning to see the kind of actions that we need to see" following those hikes.

“Good signs that things are moving in the right direction," she said. "That’s important input into how we’re thinking about where policy needs to go.”