As of December 6, 2024, the average interest rate for a 30-year fixed-rate mortgage (FRM) is 6.69%, and the average rate for a 15-year FRM is 5.96%, both slightly lower than the previous period. The 10-year Treasury yield is 4.17%, resulting in a risk premium spread that is 2.52% higher than the 30-year FRM, exceeding the historical average of 1.5%, indicating that lenders remain cautious in the face of potential economic risks. The average rate for adjustable-rate mortgages (ARM) is 6.33%, lower than the 30-year FRM but higher than the 15-year FRM, reducing its appeal to most homebuyers. Higher mortgage rates limit purchasing power, suppress demand, and force sellers to adjust prices.

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