The average 30-year fixed mortgage rate fell to 7.11% this week, down from 7.18%, according to Freddie Mac.
The 15-year fixed rate declined to 6.45% from 6.57%, offering additional relief to borrowers.
Rates reached their lowest level in seven weeks but remain substantially higher than a year ago.
Mortgage rates declined for the fourth consecutive week, providing some relief to homebuyers confronting the cost of financing a purchase.
The average rate on a 30-year fixed-rate mortgage was 7.11% for the week ending November 12, according to Freddie Mac’s Primary Mortgage Market Survey. That compares with 7.18% last week and 6.24% a year earlier.
The average 15-year fixed-rate mortgage fell to 6.45%, compared with 6.57% last week and 5.49% a year ago. Freddie Mac said the latest declines give borrowers more flexibility as they navigate the housing market.
For buyers, the weekly improvement translates into modest monthly savings. On a $300,000 mortgage financed over 30 years, the principal-and-interest payment at 7.11% would be approximately $2,018 a month, compared with $2,032 at last week’s rate — a reduction of about $14.
A rising burden over 12 months
The annual comparison presents a tougher picture. At last year’s 6.24% rate, the same loan would have carried a monthly principal-and-interest payment of approximately $1,845. Today’s buyer would pay about $173 more each month, or roughly $2,075 more annually, for the same amount borrowed.
Those calculations exclude property taxes, homeowners insurance, mortgage insurance and other expenses.
Freddie Mac’s figures represent national averages drawn from thousands of mortgage applications submitted by lenders. The weekly report reflects application activity from the preceding Thursday through Wednesday, so it may differ from a lender’s quote on any particular day.