Slowly but surely, the average mortgage rate continues to lose altitude, giving a little more hope to people who have been waiting to purchase a home.
Freddie Mac reports the average 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week, to 6.77%.
“Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market,” said Sam Khater, Freddie Mac’s chief economist. “However, homebuyers have yet to respond to lower rates, as purchase application demand is still roughly 5% below spring when rates were approximately the same.
Khater said that’s not uncommon, noting that sometimes as rates decline, demand weakens, and the apparent paradox is driven by buyers making sure rates don’t decline further before they decide to purchase.
Home prices are also a major factor. Real estate broker Redfin recently reported that on a national basis, the typical home is selling for 0.4% less than its list price. That’s significant because it’s the first time that has happened since July 2020, when the rapid escalation in home prices began.
While 6.77% is the average mortgage rate, terms will vary depending on a number of factors. ConsumerAffairs researchers show you how to look for a mortgage here.
