After increasing for the previous five weeks, the average rate for a 30-year fixed-rate mortgage this week dropped to 6.96%, down from 7.04% 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 6.69%.
“After crossing the 7 percent mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks,” says Sam Khater, chief economist for Freddie Mac, in a statement. “While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications.”
The average rate for a 15-year fixed-rate mortgage was 6.16%, down from last week when it averaged 6.27% but up from a year ago when it averaged 5.96%.
Yesterday, the Mortgage Bankers Association reported that mortgage application volume inched up 0.1% during the week ended January 17, as the average rate for a 30-year decreased from the previous week.
Photo: Bikram Sharma