Housing Week: 30-Year Rate Eases to 7.18%, but Buyers Still Pay 10% Above a Year Ago

Freddie Mac's weekly survey put the 30-year fixed rate at 7.18% for the week ending November 5, the second straight weekly decline after the early-October peak near 7.40%. The direction is the good news for buyers. The level is the problem: at 7.18%, the principal-and-interest payment on the median new home still runs about 10% above what the same purchase cost a year ago, when the 30-year sat at 6.22%. The rate is easing, but it has not yet eased into affordability that moves the market.

Key Takeaways The 30-year fixed rate fell to 7.18% for the week ending November 5, down from a 7.40% peak in early October and 6 bp below the prior week. On the median new-home price of $393,300, the payment…