The average long-term U.S. mortgage rate retreated for the ninth straight week to reach its lowest level since May, the Associated Press reports. According to mortgage buyer Freddie Mac, the average rate on a 30-year mortgage dipped to 6.61% from 6.67% last week. A year ago, the rate averaged 6.42%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched down this week, with the average rate falling to 5.93% from 5.95% last week. A year ago, it averaged 5.68%, Freddie Mac said.
Mortgage rates have been easing since late October, when the average rate on a 30-year home loan reached 7.79%, the highest level since late 2000.
Despite the recent decline, the average rate on a 30-year home loan remains sharply higher than just two years ago, when it was 3.11%. The large gap between rates now and then is contributing to the low inventory of homes for sale by discouraging homeowners who locked in rock-bottom rates two years ago from selling.
Some housing economists are forecasting that home sales will increase next year, on the assumption that mortgage rates ease further.
