The average rate for a 30-year mortgage in the U.S. has decreased for the fifth consecutive week, reaching its lowest point since late December, offering potential relief for homebuyers during the peak home sales season.
The big picture: Current data from mortgage buyer Freddie Mac indicates that the average 30-year mortgage rate has dropped to 6.85%, down from 6.87% the previous week and 6.9% a year ago.
- Homebuyers looking to refinance are also benefiting from reduced borrowing costs, with the average rate on 15-year fixed-rate mortgages decreasing from 6.09% to 6.04% this week, compared to 6.29% a year ago.
- The combination of rising home prices and higher mortgage rates in recent years has discouraged many potential buyers, particularly first-time buyers lacking equity from previous home ownership.
What we’re watching: The decline in mortgage rates may provide a positive outlook for the upcoming spring homebuying season, especially since the 30-year mortgage rate is at its lowest level since December and remains stable around 7% this year.
Driving the news: Mortgage rates are influenced by various factors, including the bond market’s response to Federal Reserve interest rate decisions, and the recent decrease in rates mirrors a drop in the 10-year Treasury yield, now at 4.5%.
