The mortgage rates have fallen to their lowest level since September
As the latest economic data shows signs of a cooling trend, mortgage rates fell this week to their lowest level since September.
The average 30-year-old rate fixed mortgage According to Freddie Mac mortgage buyer, the rate dropped to 6.15% this week from 6.33% last Wednesday. An average rate of 3.56% was the rate one year ago.
“As inflation continues to moderate, “Mortgage rates fell again this week,” Sam Khater, chief economist at Freddie Mac, said. “Rates are at their lowest since September last year, which has boosted both homebuyer and homebuilder sentiment.”
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Khater stated that “Declining rates provide a much-needed boost for the housing market, however the supply of houses remains a persistent concern.”
The average 15-year fixed rate mortgage rate fell to 5.28% last week from 5.52%. The average rate was 2.79% a year back.
The dramatic rise in mortgage rates in the last year has slowed the housing market. Sales of existing homes have fallen for 10 consecutive month to their lowest level in over a decade.
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Though inflation at the consumer level has declined for six straight months, Fed officials have signaled that they may raise the central bank’s main borrowing rate another three-quarters of a point in 2023, which would be in a range of 5% to 5.25%.
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This report was compiled by the Associated Press.