A welcome change for homebuyers as 30-year mortgage averages drop to an eight-month low
Long-term mortgage rates fell to their lowest level in eight months, Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed.
The 30-year fixed-rate mortgage reached 6.60% this week, down from last week’s average of 6.66%. The popular mortgage rate stood at 6.15% a year ago.
Similarly, the 15-year fixed mortgage also decreased, averaging 5.76%, down from the previous week’s 5.87%. This time last year, the 15-year FRM averaged 5.28%.
“Mortgage rates decreased this week, reaching their lowest level since May of 2023,” Freddie Mac chief economist Sam Khater said in the report. “This is an encouraging development for the housing market and, in particular, first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.”
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NerdWallet mortgage expert Holden Lewis provided insights into the factors influencing mortgage rates, explaining, “Mortgage rates respond to many signals, including the inflation rate and global tensions. The most recent inflation data was mostly in line with expectations, preventing rates from rising. Attacks on shipping in the Red Sea, and the ensuing counterattacks, gave mortgage rates room to drop a little.”
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