US Mortgage Rates Hit Lowest Levels Since April Amid Rising Applications
Average long-term US mortgage rates have fallen to 6.67%, the lowest since April, as mortgage applications rise and home sales show mixed trends.
Overview
- Mortgage interest rates have decreased for five consecutive weeks, now averaging 6.67%, the lowest since early April.
- The average long-term mortgage rate dropped from 6.77% last week to 6.67%, reflecting a broader trend in the housing market.
- Despite lower mortgage rates, sales of previously occupied homes reached a nearly 30-year low last year, indicating ongoing market challenges.
- Pending home sales rose by 1.8% in May, suggesting some recovery in buyer interest amid falling mortgage rates.
- A year ago, the average long-term mortgage rate was significantly higher at 6.95%, highlighting the recent decline in borrowing costs.
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Analysis
Center-leaning sources frame the mortgage market as fluctuating yet cautiously optimistic, highlighting recent rate drops and slight increases in applications. They implicitly suggest a recovery trend while acknowledging past declines in home sales, reflecting a balanced perspective that recognizes both positive and negative market dynamics.
Mortgage rates have declined for five consecutive weeks now, according to FreddieMac data released Thursday.
Now at an average 6.67% rate on a 30-year mortgage, rates are down by more than 20 basis points from where they sat at the end of May.
There's around a 70% chance rates will be reduced then, according to the CME Group's FedWatch tool.
Articles (4)
Center (3)
"…The average rate on a 30-year U.S. mortgage fell for the fifth straight week to its lowest level since early April, an encouraging sign for potential buyers who have wrestled with rising home prices."
ABC News·3d·"…A decline in mortgage rates can be exciting, especially considering that they've been falling consistently over the past month and in the context of decades-high mortgage rates in recent years."
CBS News·3d·"…Americans are seizing any opportunity to refinance their mortgages."
USA TODAY·3d·FAQ
Average long-term US mortgage rates have declined due to a combination of factors including market demand for bonds, shifts in inflation expectations, and possibly anticipation of Federal Reserve policy changes. Lower rates are often a response to slower economic growth or reduced inflation concerns.
Home sales have shown mixed trends; while pending home sales rose by 1.8% in May, indicating increased buyer interest, sales of previously occupied homes reached a nearly 30-year low last year, suggesting ongoing market challenges despite lower rates.
The current average long-term mortgage rate is 6.67%, which is below the 6.95% average from a year ago, showing a recent decline in borrowing costs.
Despite lower mortgage rates, home sales remain weak due to high home prices, limited housing inventory, and broader economic uncertainty, which may be discouraging potential buyers from entering the market.
Forecasters generally predict that mortgage rates will remain between 6% and 7% for the remainder of the year, depending on inflation trends and Federal Reserve actions.
History
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