The average rate on a 30-year mortgage in the U.S. experienced its third consecutive weekly decline, dropping to 6.6% from 6.69% the previous week, as reported by mortgage buyer Freddie Mac.
This decline is positive news for potential homebuyers, especially during a traditionally less competitive period for the housing market.
The big picture: Borrowing costs for 15-year fixed-rate mortgages have also decreased, with the average rate falling to 5.84% from 5.96% compared to the previous week, which is down from 6.38% a year ago.
- The current average rate on a 30-year mortgage is the lowest it has been since October 24, when it stood at 6.54%.
- Factors contributing to this trend include mortgage rate decreases, steady consumer income growth, and a bullish stock market, which have collectively boosted homebuyer demand in recent weeks, according to Sam Khater, chief economist at Freddie Mac.
- Despite these improvements, many potential homebuyers still face challenges due to elevated mortgage rates and increasing home prices, making homeownership difficult for many.
Driving the news: Recent declines in mortgage rates follow a general upward trend since a two-year low of 6.08% in late September, driven by actions of the Federal Reserve and fluctuations in inflation impacting the trajectory of the 10-year Treasury yield.
