Average 30-Year Fixed Mortgage Rate Falls to 6.01%
What happened
The average 30-year fixed-rate mortgage in the U.S. declined to 6.01%, according to Freddie Mac's latest Primary Mortgage Market Survey. This marks another drop in borrowing costs for homebuyers, a key factor influencing the real estate market's activity and affordability.
Why it matters
- This rate of 6.01% marks the lowest point for the 30-year fixed mortgage since September 2022. For comparison, the average rate was 6.85% a year ago. - The historical average for a 30-year fixed-rate mortgage, tracked since 1971, is 7.69%. Rates hit an all-time high of 18.63% in October 1981 and a record low of 2.65% in January 2021. - The recent drop in mortgage rates is closely tied to a decrease in the 10-year Treasury yield, which was influenced by recent data showing softer inflation and a stable labor market. - While lower rates are improving affordability, the housing market is still experiencing sluggish sales. In January, the number of homes sold saw a year-over-year decline of 9.03%. - Home prices nationally saw a modest increase of 1.1% year-over-year in January, even as the number of homes for sale slightly decreased. - The lower rate environment has spurred a significant increase in refinancing activity, with applications more than doubling over the past year. This allows recent homebuyers to potentially lower their yearly mortgage payments by thousands of dollars. - The average rate for a 15-year fixed-rate mortgage has also declined, currently at 5.35%, down from 5.44% the previous week and 6.04% a year ago.
Key numbers
- The average 30-year fixed-rate mortgage in the U.S.
- declined to 6.01%, according to Freddie Mac's latest Primary Mortgage Market Survey.
- - This rate of 6.01% marks the lowest point for the 30-year fixed mortgage since September 2022.
- For comparison, the average rate was 6.85% a year ago.
Quick answers
What happened in Average 30-Year Fixed Mortgage Rate Falls to 6.01%?
The average 30-year fixed-rate mortgage in the U.S. declined to 6.01%, according to Freddie Mac's latest Primary Mortgage Market Survey. This marks another drop in borrowing costs for homebuyers, a key factor influencing the real estate market's activity and affordability.
Why does Average 30-Year Fixed Mortgage Rate Falls to 6.01% matter?
This rate of 6.01% marks the lowest point for the 30-year fixed mortgage since September 2022. For comparison, the average rate was 6.85% a year ago. The historical average for a 30-year fixed-rate mortgage, tracked since 1971, is 7.69%. Rates hit an all-time high of 18.63% in October 1981 and a record low of 2.65% in January 2021. The recent drop in mortgage rates is closely tied to a decrease in the 10-year Treasury yield, which was influenced by recent data showing softer inflation and a stable labor market. While lower rates are improving affordability, the housing market is still experiencing sluggish sales. In January, the number of homes sold saw a year-over-year decline of 9.03%. Home prices nationally saw a modest increase of 1.1% year-over-year in January, even as the number of homes for sale slightly decreased. The lower rate environment has spurred a significant increase in refinancing activity, with applications more than doubling over the past year. This allows recent homebuyers to potentially lower their yearly mortgage payments by thousands of dollars. The average rate for a 15-year fixed-rate mortgage has also declined, currently at 5.35%, down from 5.44% the previous week and 6.04% a year ago.
