Per ABC News

The 30-year mortgage rates dropped from 6.6% to 6.42% after its second consecutive week of decline. These changes could positively affect homebuyers as the spring buying season is scheduled to start.

A year ago, the average rate for 30-year mortgages was at 4.42%, exactly 2% higher than the new rates as of press time. Freddie Mac's chief economist, Sam Khater, gave a statement on how the news could help improve the real estate market conditions.

Khater: “On the homebuyer front, the news is more positive with improved purchase demand and stabilizing home prices... If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season.”

US home sales dropped by 17.8% from 2021 to 2022, which was the weakest year for home sales since 2014. This also resulted in the biggest annual decline since 2008, during the housing crisis.

The highest 30-year mortgage reached was 7.08%, the highest it has seen in two decades, as the Feds were trying to deal with the four-decade high inflation. The 10-year mortgage rates dropped to 3.47%, while the 15-year mortgage rates dropped to 5.68% last week.

In September 2022, the starter home in New York City dropped to 9% over the last three years. This resulted in costs increasing from $400k to $800k. The median square footage for Manhattan homes reached just 86 square feet in August, equivalent to 4 and 1/2 parking spaces.

By November 2022, the demand for mortgages has dropped to its lowest in 25 years, down by 42% year-over-year in October. Applications reached the lowest level ever since 1997, with the housing situation expected to get worse in 2023.

During that time, 30-year fixed mortgage rates reached 7.16%, the highest since 2001.

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