In a housing market where home prices remain near record highs, lower mortgage rates could provide some relief to prospective homebuyers. According to ABC News, the average rate on a 30-year mortgage has recently decreased to 6.35%, the lowest level in more than a year. A year ago, the rate was at 7.18%. Similarly, the average rate for a 15-year fixed-rate mortgage, often favored by those looking to refinance, has fallen to 5.51%, compared with 6.55% a year ago.
“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.”