Mortgage rates fall to lowest level since May 2023
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Mortgage rates dropped this week to their lowest level in eight months in a welcome occurrence for potential homebuyers who have watched rates climb for the past few weeks.
Freddie Mac's latest Primary Mortgage Market Survey released Thursday showed that the average rate for the benchmark 30-year fixed mortgage decreased to 6.60% this week, a decline from 6.62% last week but still up from 6.33% a year ago.
A property for sale on Elm Avenue in Toronto, Ontario, on March 13, 2023. (Lance McMillan/Toronto Star via / Getty Images)
The rate on the 15-year fixed mortgage edged lower for a third straight reading, averaging 5.76% after coming in last week at 5.87%. One year ago, the rate on the 15-year fixed note averaged 5.28%.
Sam Khater, Freddie Mac's chief economist, said these are the lowest rates since May of last year.
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«This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability,» Khater said in a statement. «However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale.»
The U.S. has seen a persistent shortage of homes on the market as many homeowners are opting not to sell amid high prices and interest rates. (Frederic J. Brown/AFP via / Getty Images)
A dearth of existing homes for sale is keeping prices elevated, but a sharp decline in mortgage rates since the fall has spurred an uptick in demand, particularly for new homes. However, the Commerce
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