The average rate for a 30-year fixed-rate mortgage fell to 6.30% this week, down from 6.34% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago this time, the average rate for a 30-year was 6.32%.
“Mortgage rates decreased this week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Over the last few weeks, mortgage rates have settled in at their lowest level in about a year. There is growing evidence that homebuyers are digesting these lower rates and gradually are willing to move forward with buying a home, which is boosting purchase activity.”
The average rate for a 15-year fixed-rate mortgage was 5.53%, down from 5.55% last week but up from 5.41% a year ago.
Samir Dedhia, CEO of One Real Mortgage, says this is “the third time in the last five weeks we’ve seen rates settle near their lowest levels in a year, a clear signal that we’re no longer in the volatile rate environment of earlier this year.”
“These steady improvements are beginning to make a meaningful impact on consumer behavior,” Dedhia says in a statement. “Buyers who had paused their home search due to affordability concerns are showing renewed interest, and the data reflects it. We’re seeing a consistent uptick in purchase activity, as more consumers grow confident that this lower-rate window may last longer than expected.”
“Refinancing has also surged, as homeowners recognize the opportunity to lock in savings, especially those coming off adjustable-rate products or pandemic-era forbearance exits,” Dedhia adds. “While some economic uncertainty remains, what we’re seeing now is a balancing act, as inflation is cooling, the labor market is softening slightly, and the Fed is being more measured in its approach to further rate cuts. For buyers and homeowners alike, this may be one of the most favorable stretches we’ve had in the past 12 months, and it’s creating an opening for more momentum heading into the fall.”
Photo: Declan Sun