Current:Home > MyAverage rate on a 30-year mortgage eases to 6.35%, its lowest level in more than a year -Aspire Money Growth
Average rate on a 30-year mortgage eases to 6.35%, its lowest level in more than a year
View
Date:2025-04-16 01:55:28
The average rate on a 30-year mortgage eased for the second week in a row and remains at its lowest level in more than a year, good news for prospective homebuyers facing home prices near all-time highs.
The rate fell to 6.35% from 6.46% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.18%.
The last time the average rate was this low was May 11, 2023.
Borrowing costs on 15-year fixed-rate mortgages also fell this week, good news for homeowners seeking to refinance their home loan at a lower rate. The average rate fell to 5.51% from 5.62% last week. A year ago, it averaged 6.55%, Freddie Mac said.
“Mortgage rates fell again this week due to expectations of a Fed rate cut,” said Sam Khater, Freddie Mac’s chief economist. “Rates are expected to continue their decline, and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines.”
Signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.
Elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have kept many would-be homebuyers on the sidelines, extending the nation’s housing slump into its third year.
Sales of previously occupied U.S. homes are running below last year’s pace, though they ended a four-month slide in July.
After climbing to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year — more than double what it was just three years ago. But this month, the average rate has made its biggest downshift in more than a year.
veryGood! (5)
Related
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- A Look at the Surprising Aftermath of Bill Gates and Melinda Gates' Divorce
- Poultry companies ask judge to dismiss ruling that they polluted an Oklahoma watershed
- Travis Kelce's latest play: A line of food dishes including BBQ brisket, sold at Walmart
- Former Syrian official arrested in California who oversaw prison charged with torture
- More help arrives in Acapulco, and hurricane’s death toll rises to 39 as searchers comb debris
- C.J. Stroud's exceptional start for Texans makes mockery of pre-NFL draft nonsense
- Macron vows to enshrine women’s rights to abortion in French Constitution in 2024
- Romantasy reigns on spicy BookTok: Recommendations from the internet’s favorite genre
- West Virginia's Akok Akok 'stable' at hospital after 'medical emergency' in exhibition game
Ranking
- 'No Good Deed': Who's the killer in the Netflix comedy? And will there be a Season 2?
- Israeli settler shoots and kills Palestinian harvester as violence surges in the West Bank
- Their sacrifice: Selfess Diamondbacks 'inch closer,' even World Series with 16-hit ambush
- Israel is reassessing diplomatic relations with Turkey due to leader’s ‘increasingly harsh’ remarks
- Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
- Their sacrifice: Selfess Diamondbacks 'inch closer,' even World Series with 16-hit ambush
- AP Sources: Auto workers and Stellantis reach tentative contract deal that follows model set by Ford
- Ohio high court upholds 65-year prison term in thefts from nursing homes, assisted living facilities
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
Maine shooting press conference: Watch updates from officials on Robert Card investigation
Francis Ngannou knocks down heavyweight champ Tyson Fury, who escapes with split decision
Mexico raises Hurricane Otis death toll to 43 and puts missing at 36 as search continues
Pressure on a veteran and senator shows what’s next for those who oppose Trump
UAW escalates strike against lone holdout GM after landing tentative pacts with Stellantis and Ford
Federal prosecutors seek to jail Alabama lawmaker accused of contacting witness in bribery case
Why is there a fuel shortage in Gaza, and what does it mean for Palestinians?