Mortgage rates continued to fall this week, with the average rate for a 30-year, fixed-rate mortgage dropping to 6.58%, down from 6.63% 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 6.49%.
“Mortgage rates fell to their lowest level since October,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Purchase application activity is improving as borrowers take advantage of the decline in mortgage rates.”
The average rate for a 15-year fixed-rate mortgage was 5.71%, down from 5.75% last week but up from 5.66% a year ago.
Samir Dedhia, CEO of One Real Mortgage, says the dip in rates comes “despite some mixed economic signals.”
“While inflation data earlier in the week aligned with expectations, the Producer Price Index came in hotter than anticipated, raising new concerns that the Fed may delay any policy easing,” Dedhia adds. “Some market participants are still expecting a potential rate cut in September, but others believe that a more cautious approach may prevail given the latest wholesale inflation surge. This uncertainty is keeping bond markets on edge, which in turn continues to impact mortgage pricing.”
“Still, the current environment presents opportunities,” Dedhia adds. “Buyers are gaining back some much-needed purchasing power, especially compared to earlier this year when rates peaked over 7 percent. For homeowners, the recent decline could open doors to refinance, whether it’s to lower monthly payments, consolidate debt or access home equity. Timing is key, and staying proactive in this window of lower rates may help borrowers make meaningful financial gains before the next policy shift or market turn.”
Photo: Declan Sun