Average US long-term mortgage rate falls to 6.19%, near its low for the year
The average rate on a 30-year U.S.mortgage fell again this week, slipping close to its low point so far this year.The decline brings the average long-term mortgage rate to 6.19% from 6.23% last week, mortgage buyer Freddie Mac said Thursday.
A year ago, the rate averaged 6.69%.This is the second straight weekly drop in the average rate after three straight increases.It’s now at the lowest level since Oct.
30, when it was at 6.17%, the lowest level in more than a year.Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week.The rate averaged 5.44%, down from 5.51% last week.
A year ago, it was 5.96%, Freddie Mac said.Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.The 10-year yield was at 4.1% at midday Thursday.
That’s up from about 4% last Wednesday.Declining mortgage rates boost homebuyers’ purchasing power.Popular ReadsTrump admin live updates: Trump pardons former entertainment exec indicted by own DOJDec 4, 6:23 AMFamily of fisherman killed in US boat strike files complaint alleging he was murderedDec 3, 5:08 AMTeen on cruise ship possibly died by asphyxiation resulting from bar hold: SourceNov 21, 2:20 PMEasing mortgage rates this fall helped lift sales of previously occupied U.S.
homes in October on an annual basis for the fourth straight month.Still, affordability remains a challenge for many aspiring homeowners after years of skyrocketing prices.
Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.While U.S.economic growth appears solid, hiring is sluggish and the unemployment rate has ticked up.
Mortgage rates began declining this summer ahead of the Federal Reserve’s decision in Sep...