Average rate on a 30-year mortgage in the US falls to 6.85% this week
Written by MATT OTT, AP Business Writer
WASHINGTON (AP) — The average 30-year mortgage rate in the United States saw a decline this week after a month of steady increase, although rates for homebuyers remain relatively high.
According to Freddie Mac, the long-term rate dropped to 6.85% from 6.89% last week, with a year-over-year comparison showing a decrease from 6.99%.
Similarly, 15-year fixed-rate mortgages, favored by homeowners seeking to refinance, also experienced a decrease in average rate from 6.03% to 5.99% compared to last week and 6.29% a year ago.
Various factors influence mortgage rates, including the Federal Reserve’s interest rate decisions, bond market expectations, and the 10-year Treasury yield, which serves as a benchmark for lenders.
Bond yields have been fluctuating, with recent trends showing a slight decrease after reaching lows in April due to uncertainties surrounding tariffs and government debt.
Despite the recent dip, the 30-year mortgage rate has remained close to its peak above 7% earlier this year. High rates have impacted purchasing power for potential homebuyers, contributing to a slowdown in the housing market since 2022.
Recent data indicates a slowdown in home sales, with pending home sales falling in April. Economists predict continued volatility in mortgage rates, with forecasts suggesting rates to remain between 6% and 7% for the rest of the year.
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