Mortgage rates have declined for the second consecutive week, reaching their lowest level in over a month. According to Freddie Mac’s latest survey, the average 30-year fixed-rate mortgage fell to 6.69%, its lowest mark since October.
The drop in rates has led to an increase in purchase applications as potential buyers wait for further rate reductions. Currently, about 80% of existing mortgage holders have a rate below 5%, according to a Zillow survey from earlier this year.
Sam Khater, Freddie Mac’s chief economist, notes that despite the modest decrease in rates, consumers are responding positively to the change. “The responsiveness of prospective homebuyers to even small changes in rates illustrates that affordability headwinds persist,” he said.
The 15-year fixed-rate mortgage also saw a decline, falling to 5.96% from 6.10% last week. The rate on the 15-year fixed note averaged 6.29% one year ago.
Source: https://www.foxbusiness.com/economy/mortgage-rates-fall-second-straight-week-lowest-since-october