The average rate on a 30-year mortgage edged higher this week, but remained close to its lowest level in more than a year.
The rate rose to 6.49% from 6.47% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.09%.
After jumping to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year—more than double what it was just three years ago.
Elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have discouraged home shoppers, extending the nation’s housing slump into its third year.
Mortgage rates have been mostly easing in recent weeks as signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.
“In 2023, the 30-year fixed-rate mortgage nearly hit 8%, slamming the brakes on the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Now, the 30-year fixed-rate hovers around 6.5% and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.”
