The average rate on a 30-year fixed-rate mortgage in the United States has dipped to 6.23%, marking its third consecutive weekly decline. This trend offers some relief to prospective homebuyers as the crucial spring homebuying season progresses.
According to data released by mortgage buyer Freddie Mac on Thursday, the benchmark 30-year fixed rate mortgage rate decreased from 6.3% in the previous week. This current average rate of 6.23% is the lowest it has been since March 19, when it stood at 6.22%. For comparison, the average rate stood at 6.81% one year ago.
Borrowing costs for 15-year fixed-rate mortgages, a popular option for homeowners looking to refinance their existing loans, also saw a reduction this week. The average rate for a 15-year fixed-rate mortgage fell to 5.58% from 5.65% last week. A year prior, this rate averaged 5.94%, Freddie Mac reported.
Mortgage rates are subject to a variety of influences, including the Federal Reserve’s monetary policy decisions regarding interest rates, as well as the expectations of bond market investors concerning the future trajectory of the economy and inflation levels.
The consistent downward movement in mortgage rates over the past three weeks could potentially stimulate activity in the housing market. Lower borrowing costs can make home purchases more affordable, potentially increasing buyer demand during a period traditionally characterized by heightened sales volume.
