Mortgage rates decreased slightly this week, after three consecutive weeks of increases, with the average rate for a 30-year fixed-rate mortgage falling to 6.85%, according to Freddie Mac.
That’s down from 6.89% last week and down from 6.99% a year ago.
“The average mortgage rate decreased this week, which is welcome news to potential homebuyers who also are seeing inventory improve and house price growth slow,” says Sam Khater, chief economist for Freddie Mac, in a statement.
The average rate for a 15-year fixed-rate mortgage was 5.99%, down from 6.03% last week and down from 6.29% a year ago.
Samir Dedhia, CEO of One Real Mortgage, says “while the weekly drop was slightly less than anticipated, it still reflects a small but positive shift from last week’s 6.89 percent and 6.03 percent, offering a bit of relief after several weeks of upward movement.”
“This subtle improvement seems tied to easing inflation pressures and more stable activity in the bond market,” Dedhia says. “As Treasury yields pulled back, mortgage rates followed, showing that the market is still very sensitive to economic data and investor expectations around future Fed decisions. While we’re not seeing a dramatic drop, this kind of consistency is a good sign as we move into the heart of the summer buying season.”
“For buyers and homeowners, the takeaway is to stay ready,” he adds. “Even modest dips in rates can translate into better affordability and payment options. Whether you’re purchasing or refinancing, now’s a smart time to evaluate your options and lock in a strategy before rates shift again.”
Photo: Towfiqu Barbhuiya