After rising for several weeks, mortgage rates have dipped slightly this week. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.96% this week, down from 7.09%.
It’s finally a bit of good news for homebuyers ahead of the start of the spring housing market.
“After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks,” Sam Khater, Freddie Mac’s chief economist, said in a statement.
“While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications.”
According to the Mortgage Bankers Association, interest in taking out a mortgage rose last week despite elevated interest rates. MBA reports the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.02% percent from 7.09% percent, with points decreasing to 0.62 from 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
Mortgage rates are keyed to the yield on the 10-year Treasury bond, which declined slightly this week. Further declines could lower mortgage rates heading into spring.