Mortgage rates plunge to lowest level in more than a year
The standard 30-year fixed-rate mortgage averaged 6.47% this week, mortgage financing giant Freddie Mac said Thursday. That’s down substantially from last week’s average of 6.73% and marks the lowest level since May 2023.
Mortgage rates have steadily fallen over the past several weeks since reaching a 2024 peak of 7.22% in early May. Rates are down from a two-decade high seen late last year.
“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move,” said Sam Khater, Freddie Mac’s chief economist, in a release.
“Additionally, this drop in rates is already providing some existing homeowners the opportunity to refinance, with the refinance share of market mortgage applications reaching nearly 42 percent, the highest since March 2022.”
This story is developing and will be updated.
The decrease in mortgage rates could potentially stimulate business activity in the housing sector, as it makes purchasing a home more affordable for many buyers. Furthermore, the drop in rates also encourages existing homeowners to consider refinancing their mortgages, which could contribute to the overall health of the economy by reducing their monthly payments.
