Average mortgage rates continue to slowly but surely decline, offering a little hope to those who have been waiting to buy a home.
Freddie Mac reported that the average 30-year fixed-rate mortgage fell to the lowest level since mid-March, down 12 basis points from the previous week to 6.77%.
“Mortgage rates are moving in the right direction and the economy remains resilient, two positive signs for the housing market,” said Sam Carter, chief economist at Freddie Mac. “But homebuyers have not yet responded to lower interest rates, and purchase application demand remains about 5% lower than in the spring, when rates were roughly the same.”
That's not unusual, said Khater, noting that falling interest rates can also dampen demand. The apparent contradiction arises as buyers wait to see if interest rates fall further before deciding to buy.
Home prices are also a big factor: Real estate brokerage Redfin recently reported that nationally, the typical home is selling for 0.4% below list price, which is notable because it's the first time that's happened since July 2020, when home prices began to soar.
The average mortgage interest rate is 6.77%, but terms vary depending on a variety of factors, and ConsumerAffairs researchers offer tips on how to shop for a mortgage here.
Reporter Mark Huffman
Mark Huffman has been a consumer news reporter for ConsumerAffairs since 2004. He covers real estate, gasoline prices and the economy and has reported extensively on negative option selling. He previously worked as a reporter and editor for The Associated Press in Washington, D.C., and was a correspondent for Westwood One Radio Networks and Marketwatch.
Read the full bio
Source link