Average US 30-year mortgage rate eases to 7.32% in first drop since August
Mortgage rates dropped for the first time since August.
The short version
- The 30-year fixed rate fell to 7.32% from 7.40%.
- Freddie Mac, the government-backed home loan company, reported the decrease Thursday.
- Borrowing costs remain far above last year's 6.19% average.
Check your monthly budget if you are house hunting. The benchmark 30-year fixed-rate mortgage dropped to 7.32% from 7.40% this week, according to Freddie Mac, the government-backed home loan company. It is the first pullback since late August, offering a tiny breath of relief after months of relentless climbs.
One year ago, the Average rate sat at 6.19%. Borrowing costs on 15-year fixed-rate mortgages also eased, slipping to 6.68% from 6.71% last week. Mortgage rates are influenced by inflation, Federal Reserve policy, and bond-market investors.
The run-up has added roughly $355 to the monthly cost for a borrower financing a $400,000 home loan. U.S. home sales remain stalled this year as rising rates limit purchasing power and prompt many families to put off buying. Fannie Mae, the government-sponsored mortgage Finance corporation, projects that the 30-year rate will Average 7.4% in the final quarter of this year and 7.5% in 2027. A single week of easing does not make a housing market.
