Mortgage rates fell this week to the lowest level since May, with the average rate for a 30-year, fixed-rate mortgage dropping to 6.60%, down from 6.66% last week, according to Freddie Mac.
A year ago at this time, the average rate for a 30-year was 6.15%.
“Mortgage rates decreased this week, reaching their lowest level since May of 2023,” says Sam Khater, chief economist for Freddie Mac, in a statement. “This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability.
“However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale,” Khater adds.
The average rate for a 15-year fixed-rate mortgage was 5.76%, down from 5.87% last week.
A year ago at this time, the average rate for a 15-year was 5.28%.
The drop in rates has been fueling new listings and home sales. Yesterday, the Mortgage Bankers Association reported that mortgage application volume surged 10.4% last week, as the average rate for a 30-year fixed-rate mortgage fell to 6.75%, down from 6.81%.
Photo: Alison Pang