Mortgage rates decreased this week, with the average rate for a 30-year fixed-rate mortgage falling to 6.73%, down from 6.78% 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 6.90%.
“Mortgage rates declined to their lowest level since early February,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Expectations of a Fed rate cut coupled with signs of cooling inflation bode well for the market, but apprehension in consumer confidence may prevent an immediate uptick as affordability challenges remain top of mind. Despite this, a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential homebuyers.”
The average rate for a 15-year fixed-rate mortgage was 5.99%, down from 6.07% last week and down from 6.25% a year ago.
Yesterday the Mortgage Bankers Association reported that mortgage application volume dropped 3.9% during the week ended July 26, while rates remained relatively flat.
Photo: Alison Pang