The average rate on a 30-year mortgage in the U.S. decreased to 6.64% from 6.65% over the previous week, marking the second consecutive week of decline.
The decrease offers a positive development, albeit a slight one, for homebuyers during the spring season.
The big picture: This drop in rates aligns with a general downward trend that has been observed since the rate peaked over 7% in mid-January.
- Alongside the decrease in 30-year mortgage rates, borrowing costs on 15-year fixed-rate mortgages – a popular option for homeowners seeking to refinance – also saw a decline, with the average rate falling to 5.82% from 5.89% the previous week and 6.06% a year ago.
Go deeper: The downward movement in mortgage rates this year correlates with changes in the 10-year Treasury yield, which has mostly decreased since mid-January. Economic slowdown concerns and the impact of tariffs have been key drivers behind these changes.
- Experts suggest that further declines in mortgage rates are likely in the coming months due to the current market conditions, with potential positive effects on the housing market throughout the rest of the year.
- The U.S. housing market has experienced a sales decline since 2022 when mortgage rates started to rise from pandemic-induced lows.
- Rising home prices have led to a record high typical monthly payment of $2,802 for U.S. homebuyers.
