Home buyers may want to take note: Mortgage rates are falling again, hitting the lowest level during a spring buying season in years and offering a potential fresh boost to affordability.
The 30-year fixed-rate mortgage fell to a 6.23% average this week, Freddie Mac reports.
“Rates currently stand at their lowest level in the last three spring homebuying seasons,” says Sam Khater, Freddie Mac’s chief economist. “This improvement, coupled with a pickup in purchase applications and refinance activity, as well as an increase in monthly pending home sales, underscores signs of improving momentum in the market.”
The National Association of REALTORS® reported earlier this week that pending home sales—a forward-looking indicator based on contract signings—rose 1.5% in March compared to February. Still, housing inventory remains constrained. Lawrence Yun, NAR’s chief economist, pointed to pent-up housing demand, noting that “a greater supply of inventory will help translate that demand into more home sales.”
Meanwhile, home buyers do appear to respond whenever rates drop. Mortgage applications for home purchases jumped 10% last week on lower rates and are up 14% compared to a year ago, the Mortgage Bankers Association reported Wednesday.
“Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job market, and home buyers are experiencing a buyer’s market in most of the country,” Mike Fratantoni, chief economist at MBA, said in a statement.
Mortgage Rates This Week
Here’s a closer look at the national average in mortgage rates for the week ending April 23:
- 30-year fixed-rate mortgages: averaged 6.23%, down from last week’s 6.30% average. A year ago, 30-year rates averaged 6.81%.
- 15-year fixed-rate mortgages: averaged 5.58%, down from last week’s 5.65% average. A year ago, 15-year rates averaged 5.94%.
