Mortgage rates fell for the second straight week as labor market and inflation data has encouraged bond traders to buy pushing down rates, according to the latest data from Freddie Mac weekly survey.
By The Numbers:
- The 30-year fixed-rate mortgage fell to 7.02%, marking a 7 basis point decrease from the previous week. This is the second consecutive week of declines, hinting at a potential shift in the mortgage rate trajectory.
- The 15-year fixed-rate mortgage saw a more significant drop, decreasing by 10 basis points to 6.28%. Like the 30-year mortgage, this rate also declined for the second week in a row.
What They Are Saying: Sam Khater, Freddie Mac’s Chief Economist, noted the link between easing inflation and lower mortgage rates. “Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.”
The bottom line: While the drops in mortgage rates are modest, they signal a positive trend for the housing market. Prospective homebuyers might find a bit more room in their budgets, making the dream of homeownership slightly more attainable.
