The average rate of a mortgage of 30 years in the United States has decreased this week, although it remains close to its highest level in more than two months.
The rate fell to 6.81% compared to 6.83% last week, the assumption buyer announced on Thursday. A year ago, the rate was on average 7.17%.
Borrowing costs on fixed rate mortgages of 15 years, popular with owners, refinancing their domestic loans, also dropped. The average rate dropped to 5.94% compared to 6.03% last week. It was down 6.44% a year ago, said Freddie Mac.
Mortgage rates are influenced by several factors, including the global demand for American Treasurys, interest rate decisions of the Federal Reserve and the expectations of bond market investors in future inflation.
After climbing just over 7% in mid-January, the average rate of a mortgage of 30 years remained greater than 6.62%, where it was only two weeks ago. He has increased sharply since then, reflecting volatility in the yield of the treasury to 10 years, which lenders use as a guide to lay down real estate loans.
The yield, which had mainly decreased this year after climbing to around 4.8% in mid-January, increased earlier this month at 4.5% in the midst of a sale in government bonds triggered by the anxiety of investors concerning the potential benefits of the Trump Administration Administration Administration Current trade war.
The 10 -year -old treasure yield was 4.34% at noon, down 4.40% Wednesday evening.
“The recent alliance on prices and other economic policies has led to market disorders and a general feeling of discomfort, which can be felt at stubborn mortgage rates,” said Hannah Jones, principal economic research analyst at Realtor.com.
The lower mortgage rates help stimulate the purchasing power of house buyers, but they are not sufficiently lowered to encourage more house buyers at a time when real estate prices are still increasing nationally, although more slowly, and the number of properties on the market has increased sharply compared to a year ago.
So far, high mortgage rates have attenuated sales of houses this spring, traditionally the busiest period of the year for the housing market. Sales of previously occupied American houses fell in Marchdisplaying the greatest monthly decrease since November 2022.
Last week, mortgage requests dropped 12.7% compared to the week earlier, while mortgage rates increased to their highest level in two months, according to the Deathgage Bankers Association.
“With prices now close to 7%, many potential borrowers will probably stay on the sidelines until they have a better idea of management than the rates and the economy are heading,” said MBA CEO Bob Broeksmit.
Economists expect mortgage rates to remain volatile in the coming months, although they generally call the average rate on a mortgage of 30 years to stay around 6.5% this year.
