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.
- 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.
