Current:Home > NewsAverage rate on 30 -FundPrime
Average rate on 30
View
Date:2025-04-13 18:04:03
The average rate on a 30-year mortgage in the U.S. eased for the third week in a row, a welcome trend for prospective homebuyers during what’s typically a less competitive time of the year for the housing market.
The rate dropped to 6.6% from 6.69% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.95%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week. The average rate fell to 5.84% from 5.96% last week. A year ago, it averaged 6.38%, Freddie Mac said.
The average rate on a 30-year mortgage is now at its lowest level since Oct. 24, when it was at 6.54%.
“The combination of mortgage rate declines, firm consumer income growth and a bullish stock market have increased homebuyer demand in recent weeks,” said Sam Khater, Freddie Mac’s chief economist. “While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds.”
Elevated mortgage rates and rising home prices have kept homeownership out of reach of many would-be homebuyers. U.S. home sales are on trackfor their worst year since 1995.
Mortgage rates are influenced by several factors, including the moves in the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans.
The yield, which was below 3.7% as recently as September, has mostly hovered around 4.2% this month. It was at 4.3% at midday Thursday.
The recent decline in rates follows a mostly upward climb since the average rate on a 30-year mortgage slid to a two-year low of 6.08% in late September after the Federal Reserve cut its main interest ratefrom a two-decade high. While the central bank doesn’t set mortgage rates, its actions and the trajectory of inflation influence the moves in the 10-year Treasury yield.
Many economists and traders on Wall Street expect that the Fed will cut its main interest rate again at its policy meeting next week.
Home shoppers and homeowners seeking to refinance their existing mortgage to a lower rate are taking advantage of the recent pullback in home-loan borrowing costs. Mortgage applications rose 5.4% last week from a week earlier, the fifth straight increase, according to the Mortgage Bankers Association. Refinance loan applications climbed 27%.
“Purchase applications have increased on an annual basis every week except for one over the past three months, a positive sign for the mortgage market to close out this year,” said MBA CEO Bob Broeksmit.
With home prices near all-time highs and still rising nationally, albeit more slowly, many prospective homebuyers are likely holding out for mortgage rates to ease further in coming months.
But there may not be much relief, given that many housing economists predict the average rate on a 30-year mortgage will remain above 6% next year.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
veryGood! (1)
Related
- Pregnant Kylie Kelce Shares Hilarious Question Her Daughter Asked Jason Kelce Amid Rising Fame
- Climate solution: In the swelter of hurricane blackouts, some churches stay cool on clean power
- Powerball winning numbers for September 25: Jackpot at $223 million
- How to watch People's Choice Country Awards, where Beyoncé, Zach Bryan lead 2024 nominees
- SFO's new sensory room helps neurodivergent travelers fight flying jitters
- Sen. Raphael Warnock is working on children’s book inspired by the story of Jesus feeding the 5,000
- Buying or selling a home? Here are Tennessee's top real-estate firms
- US Open Cup final: How to watch Los Angeles FC vs. Sporting Kansas City
- FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
- New York City Mayor Eric Adams vows to fight charges in criminal indictment
Ranking
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Alex Jones' Infowars set to be auctioned off to help pay victims of Sandy Hook defamation case
- MLB blows up NL playoff race by postponing Mets vs. Braves series due to Hurricane Helene
- UFC reaches $375 million settlement on one class-action lawsuit, another one remains pending
- McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
- Lady Gaga's Hair Transformation Will Break Your Poker Face
- A man convicted of killing 4 people in a small Nebraska town faces the death penalty
- Presidents Cup TV, streaming, rosters for US vs. International tournament
Recommendation
Toyota to invest $922 million to build a new paint facility at its Kentucky complex
NYC Mayor Eric Adams Charged With Conspiracy to Commit Wire Fraud and Bribery
How Halle Berry Ended Up Explaining Menopause to Mike Tyson
California fire agency employee charged with arson spent months as inmate firefighter
IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
Tommy John surgery is MLB's necessary evil 50 years later: 'We created this mess'
'Megalopolis' review: Francis Ford Coppola's latest is too weird for words
Who is Eric Adams? The New York City mayor faces charges alleging he took bribes