Mortgage rates have dropped for the third consecutive week, reaching 6.62% for a 30-year mortgage. Despite recent market volatility, this trend has made it more attractive for first-time buyers to enter the market. According to James Flanagan, vice president of community experience at Tri Point Homes, even small changes in interest rates can significantly impact buying power.
The current rate is lower than the mid-January peak of 7%, offering a significant boost to monthly payments. For example, buyers who purchased a $350,000 townhome in April will pay about $58 less per month, saving almost $21,000 over a 30-year mortgage.
A recent survey by TD Bank found that 75% of first-time homebuyers feel good about entering the market now. Experts attribute this surge to increased affordability and lower monthly payments. With more homes on the market and lower asking prices in some areas, buyers who can afford it are taking advantage of these trends.
Mortgage rates are influenced by various factors, including global demand for U.S. Treasurys, Federal Reserve interest rate decisions, and bond investors’ expectations for future inflation. While rates may remain volatile due to the ongoing Trump administration’s tariff policy, the current drop in mortgage rates offers a welcome respite for buyers.
As the housing market continues to recover from its sales slump since 2022, first-time buyers are seizing the opportunity. With more buyer-friendly trends emerging this spring, home shoppers who can afford it may benefit from increased listings and lower prices.
Source: https://www.wral.com/story/average-us-rate-on-a-30-year-mortgage-falls-to-6-62-easing-for-the-third-week-in-a-row/21953771