Mortgage rates decreased this week, with the average rate for a 30-year fixed-rate mortgage dropping to 6.35%, down from 6.46% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 7.18%.
“Mortgage rates fell again this week due to expectations of a Fed rate cut,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Rates are expected to continue their decline and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines.”
For the week ended Aug. 29, the average rate for a 15-year fixed-rate mortgage was 5.51%, down from 5.62% last week and down from 6.55% a year ago.
Although rates are starting to decrease, there is yet to be a meaningful increase in purchase volume. Yesterday, the Mortgage Bankers Association reported that total mortgage application volume only inched up 0.5% during the week ended Aug. 23, even as rates dipped.
Photos: David Kristianto