Mortgage rates continued to fall this week: According to Freddie Mac’s Primary Mortgage Market Survey the average rate for a 30-year dropped to 6.63% as of August 7.
That’s down from an average of 6.72% last week and down from an average of 6.47% a year ago.
It also marks the lowest average rate for the 30-year since April.
The average rate for a 15-year fixed-rate mortgage was 5.75%, down from 5.85% last week but up from 5.63% a year ago.
“This dip signals meaningful momentum, especially for buyers trying to stretch their budgets in today’s high-price housing market,” says Samir Dedhia, CEO of One Real Mortgage, in a statement. “This improvement can lead to thousands in long-term savings.”
“The drop in rates reflects growing optimism that inflation is continuing to cool and that the Federal Reserve may shift its policy stance later this year,” Dedhia says. “As economic indicators begin to soften and uncertainty eases, we’re seeing a positive reaction in the bond market, which directly influences mortgage pricing. That’s created a more favorable window for buyers and homeowners alike.”
“This current rate environment gives consumers more power both in terms of affordability and negotiating flexibility,” he adds. “For buyers, lower rates mean increased purchasing power. For homeowners, it could be the right time to explore refinancing options. And whether you’re buying or refinancing, getting quotes from more than one lender remains one of the smartest moves to ensure you’re getting the best deal possible.”
Photo: Susan Q Yin