Mortgage rates fell for a seventh consecutive week, with the average rate for a 30-year fixed-rate mortgage dropping to 6.63%, down 13 basis points from 6.76% 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 6.88%.
“As the spring homebuying season gets underway, the 30-year fixed-rate mortgage saw the largest weekly decline since mid-September,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The decline in rates increases prospective homebuyers’ purchasing power and should provide a strong incentive to make a move. Additionally, this decline in rates is already providing some existing homeowners the opportunity to refinance. In fact, the refinance share of market mortgage applications released this week reached nearly 44 percent, the highest since mid-December.”
The average rate for a 15-year fixed-rate mortgage was 5.79%, down from 5.94% last week and down from 6.22% a year ago.
“Market sentiment is shifting as economic uncertainty persists,” says Samir Dedhia, CEO of One Real Mortgage, commenting on the results. “Stock market volatility and weaker economic indicators have fueled expectations that the Federal Reserve will cut the Fed Funds Rate by 75 basis points this year, a notable shift from earlier projections. Investors are also preparing for a more accommodative monetary policy. Additionally, uncertainty surrounding political and economic policies has prompted a move toward bonds, traditionally viewed as safe-haven assets, contributing to the continued downward pressure on rates.”
“For homebuyers, this is a significant development, as lower rates improve affordability and boost purchasing power,” Dedhia adds. “Mortgage applications have risen from last week, signaling growing confidence in rate stability or further declines. Notably, refinance applications made up 44 percent of total applications, the highest share since mid-December. However, prolonged rate decreases could intensify competition in certain housing markets, making inventory and affordability key concerns moving forward.”
Photo: David Kristianto