Mortgage rates decreased for a second week as the average rate for a 30-year fixed-rate mortgage dipped to 6.89%, down from 6.95% last week and down from 6.96% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-year has been hovering around 7% for over a year now – coupled with high home prices, buyers are heavily discouraged.
“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week and mortgage rates followed suit,” says Sam Khater, chief economist, for Freddie Mac, in a statement. “We’re also seeing more inventory on the market, including a fair number of listings with price cuts, which is an encouraging sign for prospective buyers.”
The average rate for a 15-year fixed-rate mortgage was 6.17%, down from 6.25% last week and down from 6.30% year ago.
Yesterday the Mortgage Bankers Association reported that mortgage application volume dipped 0.2% during the week ended July 5, even though the average rate for a 30-year, fixed-rate mortgage decreased slightly compared with the previous week.
Photo: David Kristianto