The average rate for a 30-year fixed-rate mortgage fell to 6.95% this week. It was the first time the average rate for a 30-year was below 7% since August, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.31%.
“Potential homebuyers received welcome news this week as mortgage rates dropped below seven percent for the first time since August,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year.”
The average rate for a 15-year fixed-rate mortgage was 6.38%, up from 6.29% last week.
A year ago at this time, the average rate for a 15-year was 5.54%.
Photo: Susan Q Yin