Mortgage rates fall after Fed signals pause in interest-rate hikes. Realtors hope for busy spring housing season.

By Aarthi Swaminathan

The 30-year mortgage rate is averaging at 6.39% Freddie Mac said in its latest weekly survey on Thursday.

The numbers: Mortgage rates dipped slightly amid volatility in the banking sector and the U.S. central bank's indication that it would pause hiking interest rates

The 30-year fixed-rate mortgage averaged 6.39% as of May 4, according to data released by Freddie Mac on Thursday.

It's down 4 basis points from the previous week -- one basis point is equal to one hundredth of a percentage point.

Last week, the 30-year was at 6.43%. Last year, the 30-year was averaging at 5.27%.

The average rate on the 15-year mortgage rose to 5.76% from 5.71% the previous week. The 15-year was at 4.52% a year ago.

Freddie Mac's (FMCC) weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.

Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.49% as of Thursday afternoon.

What Freddie Mac said: "Spring is typically the busiest season for the residential housing market and, despite rates hovering in the mid-6% range, this year is no different," Sam Khater, chief economist at Freddie Mac, said in a statement.

"Interested homebuyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability," he added.

What are they saying? Expect rates to be volatile in the weeks ahead due to the ongoing uncertainty in financial markets, Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.

Market reaction: The yield on the 10-year Treasury note was trading below 3.4% during the afternoon trading session on Thursday.

-Aarthi Swaminathan

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05-06-23 1253ET

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