Mortgage rates dropped this week, with the average rate for a 30-year fixed-rate mortgage falling to 6.27%, down from 6.30% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
Compared with the same week one year ago, the average rate for a 30-year was 6.44%.
“Mortgage rates inched down this week and have held relatively steady over the past several weeks,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Importantly, homeowners have noticed these consistently lower rates, driving an uptick in refinance activity. Combined with increased housing inventory and slower house price growth, these rates also are creating a more favorable environment for those looking to buy a home.”
The average rate for a 15-year fixed-rate mortgage was 5.52% this week, down from 5.53% last week and down from 5.63% a year ago.
Samir Dedhia, CEO of One Real Mortgage, shared the following thoughts on the Mortgage Rate data released today by Freddie Mac:
“Mortgage rates have now held relatively stable over the past several weeks, offering a welcomed sense of predictability in an otherwise data-driven market,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “The recent decline puts rates back near one-month lows, a reversal from the post-Fed announcement bump in late September.”
“This leveling out is being fueled by multiple forces,” Dedhia says. “Expectations of future Fed rate cuts, combined with recent indicators of a cooling labor market and economy, are keeping long-term bond yields – and by extension, mortgage rates – in check. Although inflation remains sticky, markets are pricing in the likelihood of at least one more Fed cut by year-end, helping to stabilize rate trends.”
“Homeowners and buyers are responding to this environment,” he adds. “Refinance activity has picked up noticeably, as more borrowers look to take advantage of these consistently lower rates. On the purchase side, we’re seeing increased housing inventory and slower home price growth, which – when paired with rate stability – is giving buyers a stronger sense of confidence and urgency. For anyone considering a move, the current landscape offers more options and more affordability than we’ve seen in months.”
Photo: Jakub Żerdzicki