The average rate on a 30-year mortgage in the U.S. has slightly decreased to 6.78% from 6.79% the previous week.
The rate still reflects a decline from the 7.4% average rate recorded a year ago.
The big picture: Borrowing costs on 15-year fixed-rate mortgages have also eased, with the average rate slipping to 5.99% from 6% the previous week, and down from 6.76% a year ago.
- Mortgage rates are influenced by factors such as the yield on U.S. 10-year Treasury bonds, which has been rising due to positive reports on inflation and the economy, as well as expectations regarding President-elect Donald Trump’s economic plans.
Go deeper: Despite recent increases, the average rate on a 30-year mortgage remains lower than the peak rate of 7.22% in May, and reached a low of 6.08% in late September, the lowest level in two years.
- Economists predict that mortgage rates will continue to be volatile in the coming year, with a general forecast of hovering around 6% in 2025.
- The current elevated mortgage rates and high prices have contributed to a sales slump in the U.S. housing market since 2022.
