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The average rate on a U.S. 30-year mortgage has decreased slightly below 7%, marking its first decline in five weeks, according to Freddie Mac. This week, the rate fell to 6.96% from 7.04% last week, down from an average of 6.69% a year ago.
Meanwhile, 15-year fixed-rate mortgage rates have also seen a small decrease, dropping to 6.16% from 6.27%, with an average of 5.96% in mid-September. Borrowers are rejoicing as affordability improves, with mortgage applications rising last week despite recent declines.
The decline reflects a pullback in bond yields, particularly the U.S. 10-year Treasury yield at 4.64%. This has made mortgage pricing more affordable for borrowers and contributed to a national home sales slump that began in 2022.
Elevated rates have discouraged potential buyers, with home sales remaining weak as the housing market approaches its worst year since 1995. More data on annual sales will be available Friday.
Mortgage buyer Freddie Mac noted the rate changes, while experts like Sam Khater of Freddie Mac highlight that affordability challenges persist but improve, encouraging refinancing activity.
This week’s trends underscore ongoing efforts to balance economic growth with inflationary concerns in the U.S., offering a nuanced view of the housing market landscape.
Source: https://abcnews.go.com/Business/wireStory/average-rate-30-year-mortgage-slips-below-7-118027998