The average rate on a 30-year U.S. mortgage has fallen to its lowest level in four months, welcome news for prospective homebuyers who have been held back by stubbornly high home financing costs.<\/p>\n
The long-term rate fell to 6.63% from 6.72% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.47%.<\/p>\n
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.75% from 5.85% last week. A year ago, it was 5.63%, Freddie Mac said.<\/p>\n
Elevated mortgage rates have helped keep the U.S. housing market in a sales slump since early 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Home sales sank last year<\/a> to their lowest level in nearly 30 years.<\/p>\n This is the third week in a row that rates have come down. The latest average rate on a 30-year mortgage is now just above 6.62%, the low point for this year set April 10.<\/p>\n Even so, mortgage rates are not far from their high this year of 7.04%, which was set in mid-January. That\u2019s helped keep home sales sluggish so far this year<\/a>. <\/p>\n Mortgage rates are influenced by several factors, from the Federal Reserve\u2019s interest rate policy decisions to bond market investors\u2019 expectations for the economy and inflation. <\/p>\n The main barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield was at 4.23% at midday Thursday, up slightly from 4.22% late Wednesday. <\/p>\n The yield is well below where it was last week, before Friday\u2019s weaker-than-expected report on the U.S. job market<\/a> ignited worries that the Trump administration\u2019s tariffs<\/a> are stalling hiring plans by employers.<\/p>\n