US mortgage rates have fallen to their lowest level since late December, providing a welcome boost for prospective homebuyers during the traditionally busiest time of year for home sales. According to Freddie Mac, the average rate on a 30-year mortgage dropped to 6.85% from 6.87% last week, marking the fifth consecutive decline.
While this easing of rates is a positive development for potential buyers and sellers, rising home prices and elevated mortgage costs continue to deter many prospective home shoppers, particularly first-time buyers who lack equity from an existing home.
Despite this, mortgage rates are now at their lowest level since December 26, with a brief dip to a two-year low last September. The stability of these rates is attributed to the decline in the 10-year Treasury yield, which has dropped to 4.79%. This follows fears that inflation may remain higher amid a strong US economy and potential policy changes.
“This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist. The decline in mortgage rates echoes a similar decrease in the 10-year Treasury yield, which lenders use to guide pricing for home loans.
Source: https://abcnews.go.com/Business/wireStory/average-us-rate-30-year-mortgage-slips-8-119010448