Current:Home > InvestAverage rate on a 30-year mortgage falls to 6.73%, lowest level since early February -FundGuru
Average rate on a 30-year mortgage falls to 6.73%, lowest level since early February
View
Date:2025-04-13 05:34:47
LOS ANGELES (AP) — The average rate on a 30-year mortgage fell this week to its lowest level since early February, easing borrowing costs for prospective homebuyers facing record-high home prices.
The rate fell to 6.73% from 6.78% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.9%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, pulling the average rate down to 5.99% from 6.07% last week. A year ago, it averaged 6.25%, Freddie Mac said.
After jumping to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year — more than double what it was just three years ago.
The elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have discouraged home shoppers, extending the nation’s housing slump into its third year. Sales of previously occupied U.S. homes fell in June for the fourth month in a row. And sales of new single-family homes fell last month to the slowest annual pace since November.
Still, the average rate on a 30-year mortgage hasn’t gone above 7% since late May, reflecting recent signs of cooling inflation, which have raised expectations that the Federal Reserve will cut its benchmark rate in September.
Mortgage rates are influenced by several factors, including how the bond market reacts to the central bank’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans. If bond yields decline in anticipation of a Fed rate cut, that could lead mortgage rates to ease further.
Most economists expect the average rate on a 30-year home loan to remain above 6% this year.
“Expectations of a Fed rate cut coupled with signs of cooling inflation bode well for the market, but apprehension in consumer confidence may prevent an immediate uptick as affordability challenges remain top of mind,” said Sam Khater, Freddie Mac’s chief economist. “Despite this, a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential homebuyers.”
veryGood! (33)
Related
- DeepSeek: Did a little known Chinese startup cause a 'Sputnik moment' for AI?
- The Bachelorette Star Jenn Tran Shares What She Packed for Her Season, Including a $5 Skincare Must-Have
- Browns sign 20-year stadium rights deal with Huntington Bank as they position for possible new home
- 1000-Lb. Sisters Star Amy Slaton Arrested for Drug Possession and Child Endangerment
- Alex Murdaugh’s murder appeal cites biased clerk and prejudicial evidence
- Steelers' Arthur Smith starts new NFL chapter with shot at redemption – and revenge
- Sephora 24-Hour Flash Sale: 50% Off Ashley Graham's Self-Tanner, Madison LeCroy's Eye Cream & More Deals
- Simone Biles Says She's No Longer Performing This Gymnastic Move in the Most Unforgettable Way
- Rylee Arnold Shares a Long
- Man found frozen in cave along Appalachian Trail identified after nearly 50 years
Ranking
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- Donald Trump Speaks Out Nearly 2 Months After Assassination Attempt
- Bus crashes into students and parents in eastern China, killing 11 and injuring 13, police say
- Nearly 50 years after being found dead in a Pennsylvania cave, ‘Pinnacle Man’ is identified
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- 'The Bachelorette' ex who made surprise appearance said show left out 'juicy' interview
- Gymnast Kara Welsh’s Coaches and Teammates Mourn Her Death
- 3 missing in Connecticut town after boating accident
Recommendation
Don't let hackers fool you with a 'scam
Jinger Duggar Shares Never-Before-Seen Photos From Sister Jana’s Wedding
US government seizes plane used by Venezuelan president, citing sanctions violations
Ezra Frech gets his gold in 100m, sees momentum of Paralympics ramping up
The Louvre will be renovated and the 'Mona Lisa' will have her own room
Florida State coach Mike Norvell addresses 'failure' of stunning 0-2 start
Derek Jeter to be Michigan's honorary captain against Texas
Florida State coach Mike Norvell addresses 'failure' of stunning 0-2 start