The average long-term U.S. mortgage rate fell for the fifth week in a row, according to the Associated Press, more good news for prospective homebuyers grappling with an increasingly unaffordable housing market.
The latest decline brought the average rate on a 30-year mortgage down to 7.22% from 7.29% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.49%.
The average rate on a 30-year mortgage is now at the lowest level it’s been in 10 weeks, when it was 7.19%. While the recent string of rate declines are welcome news for would-be homebuyers, the average rate on a 30-year home loan remains sharply higher than just two years ago, when it was around 3%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, also declined this week, with the average rate falling to 6.56% from 6.67% last week. A year ago, it averaged 5.76%.
Rates have been declining in recent weeks along with the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield, which just a few weeks ago was above 5%, its highest level since 2007, has fallen amid hopes that inflation has cooled enough to pave the way for the Federal Reserve to cut rates.
