Average US Rate on a 30-Year Mortgage Falls for 6th-Straight Week
The average rate on a 30-year mortgage in the United States has fallen for the sixth consecutive week, providing a welcome boost in purchasing power for home shoppers as the annual spring homebuying season gets underway.
Mortgage Rates Continue to Ease
The average rate on a 30-year mortgage fell to 6.76% from 6.85% last week, according to Freddie Mac. A year ago, it averaged 6.94%. This decline in mortgage rates is a result of the Federal Reserve’s interest rate policy decisions, as well as the reaction of the bond market to these decisions.
Borrowing Costs on 15-Year Fixed-Rate Mortgages Also Ease
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week. The average rate fell to 5.94% from 6.04% last week. A year ago, it averaged 6.26%, Freddie Mac said.
Affordability Remains a Concern
While the decline in mortgage rates has not been enough to change the affordability equation for many prospective home shoppers, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Sales of previously occupied U.S. homes fell in January as rising mortgage rates and prices froze out many would-be homebuyers despite a wider selection of properties on the market.
New Data on Pending Home Sales Suggest Further Declines
New data on pending home sales, a bellwether for future completed sales, point to potentially further sales declines in coming months. They slid to an all-time low in January.
A Conclusion
The average rate on a 30-year mortgage is now at its lowest level since December 19, when it was also 6.72%. This decline in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home, said Sam Khater, Freddie Mac’s chief economist.
FAQs
* What is the current average rate on a 30-year mortgage?
+ 6.76%
* How long has the average rate on a 30-year mortgage been falling?
+ 6 weeks
* What is the average rate on a 15-year fixed-rate mortgage?
+ 5.94%
* Why are mortgage rates influenced?
+ By the Federal Reserve’s interest rate policy decisions and the reaction of the bond market to these decisions.
