The 30-year fixed-rate mortgage averaged 6.94% for the week ending May 23, down 8 basis points from last week, marking the lowest level in six weeks, according to Freddie Mac. A year ago, rates were at 6.57%. The 15-year fixed-rate mortgage also saw a decline, falling 4 basis points to 6.24%, the lowest level in six weeks.
Good News: This drop in mortgage rates is providing a glimmer of hope for homebuyers amid rising inventory levels.
- New home inventory rose to the highest level since November 2022 and existing-home inventory rose to the highest level since October
What They’re Saying: “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing homes is up,” said Sam Khater, Freddie Mac’s Chief Economist. “Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market.”
Bottom Line: The slight dip in mortgage rates, while modest, is a positive development for the housing market, especially for buyers who have been navigating high prices and limited inventory.
