The average rate for a 30-year fixed-rate mortgage fell to 7.22% this week, down from 7.29% the previous week but up from 6.49% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
It was the fifth consecutive week that mortgage rates fell on a week-over-week basis.
“Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels. The modest uptick in demand over the last month signals that there will likely be more competition in a market that remains starved for inventory.”
The average rate for a 15-year fixed-rate mortgage was 6.56%, down from last week when it averaged 6.67%. A year ago at this time, the 15-year averaged 5.76%.