Current:Home > BackAverage long-term US mortgage rate falls again, easing to lowest level since early April-LoTradeCoin
Average long-term US mortgage rate falls again, easing to lowest level since early April
View Date:2024-12-23 22:02:28
LOS ANGELES (AP) — Home loan borrowing costs eased again this week as the average rate on a 30-year mortgage declined to its lowest level since early April.
The rate fell to 6.87% from 6.95% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.67%.
This is the third straight weekly decline in the average rate, which has mostly hovered around 7% since April. Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing options.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week, lowering the average rate to 6.13% from 6.17% last week. A year ago, it averaged 6.03%, Freddie Mac said.
“Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut,” said Sam Khater, Freddie Mac’s chief economist.
Home loan rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Yields have mostly eased recently following some economic data showing slower growth, which could help keep a lid on inflationary pressures and convince the Federal Reserve to begin lowering its main interest rate from its highest level in more than 20 years.
Federal Reserve officials said last week that inflation has fallen further toward their target level of 2% in recent months and signaled that they expect to cut their benchmark interest rate once this year. The central bank had previously projected as many as three cuts in 2024.
Until the Fed begins lowering its short-term rate, long-term mortgage rates are unlikely to ease significantly, economists say.
The average rate on a 30-year mortgage remains near a two-decade high, discouraging many would-be homebuyers. The elevated rates contributed to a lackluster spring homebuying season. Sales of previously occupied U.S. homes fell in March and April as home shoppers contended with rising borrowing costs and prices.
veryGood! (6)
Related
- Mike Tyson employs two trainers who 'work like a dream team' as Jake Paul fight nears
- McDonald's is bringing back its Boo Buckets for Halloween
- Chiefs star Travis Kelce on Aaron Rodgers' 'Mr. Pfizer' jab: I'm 'comfortable' with it
- Historic Powerball jackpot, family birthdays, lead North Carolina man to $2 million prize
- Lane Kiffin puts heat on CFP bracket after Ole Miss pounds Georgia. So, who's left out?
- Proof Justin Timberlake and Jessica Biel Are in Seventh Heaven on Italian Getaway
- A taxiing airplane collides with a Chicago airport shuttle, injuring 2 people
- Iran says Armita Geravand, 16, bumped her head on a train, but questions abound a year after Mahsa Amini died
- Jake Paul's only loss led him to retool the team preparing him to face Mike Tyson
- College football Week 6 games to watch: Oklahoma-Texas leads seven must-see contests
Ranking
- Advocates Expect Maryland to Drive Climate Action When Trump Returns to Washington
- Sister Wives' Christine Brown Marries David Woolley
- The Republican field is blaming Joe Biden for dealing with Iran after Hamas’ attack on Israel
- Boomer Sooner: Gabriel throws late TD pass as No. 12 Oklahoma beats No. 3 Texas in Red River rivalry
- 25 monkeys caught but more still missing after escape from research facility in SC
- Michigan man wins $2 million after playing Powerball on a whim
- Sam Bankman-Fried stole customer funds from the beginning of FTX, exchange’s co-founder tells jury
- NFT creator wins multimillion-dollar lawsuit, paving the way for other artists
Recommendation
-
Catholic bishops urged to boldly share church teachings — even unpopular ones
-
Chrissy Metz and Bradley Collins Break Up After 3 Years
-
Marlins ace Sandy Alcantara will miss 2024 season after undergoing Tommy John surgery
-
A seventh man accused in killing of an Ecuador presidential candidate is slain inside prison
-
A growing and aging population is forcing Texas counties to seek state EMS funding
-
How David and Victoria Beckham's Marriage Survived and Thrived After Scandal
-
Biden faces more criticism about the US-Mexico border, one of his biggest problems heading into 2024
-
Doctor pleads not guilty to charges he sexually assaulted women he met on dating apps