Mortgage rates have dropped to their lowest level in four months, providing welcome relief for prospective homebuyers. According to Freddie Mac, the average rate on a 30-year U.S. mortgage has fallen to 6.63%, down from 6.72% last week and 6.47% a year ago.
This decrease is also mirrored in the 15-year fixed-rate mortgages, which have seen their average rates drop to 5.75% from 5.85% last week and 5.63% a year ago. These changes come as mortgage rates remain relatively close to their high point for this year, set in mid-January.
The latest drop brings the average long-term mortgage rate to just shy of 6.62%, setting it as the lowest point for the year so far. This decrease is seen as positive news for the U.S. housing market, which has been impacted by elevated mortgage rates since 2022. Home sales have declined significantly, with last year’s levels being the lowest in nearly 30 years.
The current rates offer a glimmer of hope for homebuyers who were previously deterred by high mortgage costs. As the market continues to evolve, it remains to be seen whether these low rates will sustain and contribute to an uptick in home sales.
Source: https://abcnews.go.com/Business/wireStory/average-rate-30-year-mortgage-drops-lowest-level-124452978