Average 30-Year Mortgage Rate Hits Lowest Point in 15 Months
Average 30-Year Mortgage Rate Drops This Week
The average 30-year mortgage rate has dropped to 6.46%, marking the lowest level in the past 15 months according to Freddie Mac. This reduction gives a glimmer of hope for home shoppers who are grappling with a challenging housing market, where affordability continues to be a pressing issue.
Year-Over-Year Comparison
To put this in perspective, the rate stood at 7.23% at this time last year. Additionally, in mid-May last year, the rate was recorded at 6.39%.
Impact on Other Mortgage Products
- 15-Year Fixed-Rate Mortgages: The average rate for this category has also seen a decline, settling at 5.62%, down from last week's 5.66%.
- This is significantly lower than the 6.55% average from a year ago.
Future Expectations
Market analysts predict that mortgage rates will continue to trend lower throughout the year as a result of waning inflation and a cooling job market. There is growing optimism regarding potential cuts to the Federal Reserve's benchmark interest rate next month, a historic move that hasn't occurred in four years.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.