The average rate on a 30-year mortgage in the U.S. decreased slightly this week, ending a six-week rise. The rate fell to 6.78% from 6.79% last week, according to Freddie Mac. This marks a drop from the same time last year when the average rate was 7.4%. Additionally, borrowing costs for 15-year fixed-rate mortgages, popular among homeowners refinancing their loans, also eased. The 15-year mortgage rate dropped to 5.99% from 6% last week and was down from 6.76% a year ago.
Mortgage rates are influenced by factors like the yield on U.S. 10-year Treasury bonds, which have been rising recently due to optimistic economic reports and inflation expectations. Despite the upward movement in bond yields, which surged due to speculation over potential policy changes under President-elect Donald Trump, mortgage rates remain lower than their peak earlier this year.
Economists expect mortgage rates to remain volatile but forecast they will stay around 6% in 2025. The combination of high borrowing costs and home prices has continued to keep the U.S. housing market in a slump since 2022.
Peoplesmind
