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The 30-year fixed-rate mortgage (FRM) has fallen to its lowest level since April, averaging 6.63% this week, according to Freddie Mac’s Primary Mortgage Market Survey. This marks a decline from last week’s average of 6.72%, offering a modest boost in affordability for prospective homebuyers. However, despite the dip, the current rate remains higher than the 6.47% average seen during the same period last year.
Sam Khater, Chief Economist at Freddie Mac, highlighted the potential benefits for buyers in the current environment. He noted that the drop in rates enhances purchasing power and emphasized that borrowers could save thousands of dollars by obtaining quotes from multiple lenders.
The 15-year fixed-rate mortgage also saw a decline, averaging 5.75% this week, down from 5.85% last week. Compared to a year ago, when the 15-year FRM stood at 5.63%, the rate is still slightly elevated, but the downward trend may bring some relief to homeowners considering refinancing or looking for a shorter loan term.
Freddie Mac releases its mortgage survey weekly to provide insight into interest rate trends and market shifts, which play a significant role in the housing market and broader economy.