Mortgage rates were basically flat this week, as the average rate for a 30-year, fixed-rate mortgage increased slightly to 6.67%, up from 6.65% 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 6.87%.
“The 30-year fixed-rate mortgage has stayed under 7 percent for nine consecutive weeks, which is helpful for potential buyers and sellers alike,” says Sam Khater, chief economist for Freddie Mac, in a statement.
The average rate for a 15-year fixed-rate mortgage was 5.83%, up slightly from 5.80% last week but down from 6.21% a year ago.
“While this marks a continued upward trend, rates have remained under 7 percent for the past nine weeks, providing some level of stability for borrowers,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “However, following the Federal Reserve’s announcement and comments yesterday, rates have started to decline, reflecting optimism that borrowing costs may ease further in the near future.”
“The recent movement in mortgage rates has been largely driven by economic data and expectations around Fed policy,” Dedhia says. “Earlier in the week, concerns over persistent inflation and uncertainty around future rate cuts kept mortgage rates elevated. However, the Fed’s latest statement signaled a steady approach to monetary policy, reinforcing market confidence that rate cuts could still be on the horizon later this year. This shift has already led to a slight pullback in mortgage rates, which could help improve affordability for prospective homebuyers.”
“For consumers, the recent rate fluctuations impact both affordability and home purchasing power,” Dedhia adds. “While rates remain elevated compared to historical lows, the latest decline could offer relief to buyers who have been waiting for better borrowing conditions. Lower rates can reduce monthly mortgage payments and improve affordability, particularly for first-time buyers struggling with high home prices. If rates continue to trend downward, more buyers may return to the market, providing a boost to housing demand in the coming months.”
Photo: Chris Liverani