The average rate on a 30-year mortgage has dropped to its lowest level in over a year, providing a favorable opportunity for potential homebuyers and homeowners seeking to refinance at a lower rate. According to Freddie Mac, the rate decreased to 6.47% from 6.73% last week and significantly lower than the 6.96% average a year ago. This marks the second consecutive weekly decline, reaching its lowest point since mid-May last year at 6.39%.
Additionally, borrowing costs for 15-year fixed-rate mortgages, popular among those refinancing, also saw a decrease to 5.63% from 5.99% last week, compared to 6.34% a year ago. The Chief Economist at Freddie Mac noted that the decline in rates enhances purchasing power for homebuyers and presents refinancing opportunities for existing homeowners.
