Massachusetts Home Buyer Guide

The average rate for a U.S. 30-year, fixed-rate mortgage loan decreased for the second time in as many weeks, according to Freddie Mac's weekly Primary Mortgage Market Survey.

The 30-year fixed-rate loan averaged 6.69 percent for the week ending December 5, 2024, down from 6.81 percent the previous week. A year ago, the 30-year note averaged 7.03 percent. Rates reached 6.84 percent for the week ending November 21, 2024, before the two-week decline.

Prospective home buyers are closely watching interest rate fluctuations.

"This week, mortgage rates decreased to their lowest level in over a month," said Sam Khater, Freddie Mac's Chief Economist. "Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved. The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist."

The Mortgage Bankers Association reported increased mortgage applications for the week ending November 29, 2024. The seasonally adjusted Purchase Index increased by 6 percent from one week earlier. The unadjusted Purchase Index decreased 30 percent compared with the previous week and was 21 percent lower than the same week one year ago.

Freddie Mac reported that the average 15-year, fixed-rate mortgage loan, a popular choice for homeowners refinancing, stood at 5.96 percent, down from the prior week when it averaged 6.10 percent. A year ago, the 15-year note averaged 6.29 percent.

For what it's worth, a Zillow article about real estate predictions in 2025 believes interest rates will fall and rise throughout the coming year. While it doesn't make sense for prospective home buyers to try to time interest rates, the dips in rates make more homes affordable.

Greater Boston Home Prices

The median price of a single-family home in the 64 cities and towns that comprise the Greater Boston Association of Realtors territory rose 3 percent in October compared to October 2023 and less than 1 percent from September 2024. The median house price in October was $855,000.

The median condominium price in October increased to $700,000, less than 1 percent compared to October 2023 but 4 percent higher than in September 2024. Through October, the median condo rose about 2 percent compared to the same 10-month period in 2023.