Mortgage rates fall, providing some relief to home buyers
Mortgage rates tick down, offering home buyers some relief in terms of affordability.
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The 30-year fixed-rate mortgage fell and averaged 6.79% as of March 28, according to data released by Freddie Mac FMCC on Thursday.
It’s down 8 basis points from the previous week — one basis point is equal to one hundredth of a percentage point.
A year ago, the 30-year was averaging at 6.32%.
The average rate on the 15-year mortgage was 6.11%, down from 6.21% last week. The 15-year was at 5.68% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging at 6.91% as of Thursday afternoon. The Mortgage Bankers Association’s survey noted that the 30-year was at 6.93% as of March 22.
What Freddie Mac said: “Rates remain elevated near seven percent as markets watch for signs of cooling inflation, hoping that rates will come down further,” Sam Khater, chief economist at Freddie Mac, said in a statement.
What are they saying? “What could drive rates to decline more quickly? Sharply falling inflation or other signs of a weakening economy (e.g., rising unemployment) would suggest that mortgage rates would fall faster than forecasted,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement.
“We will watch the economic data coming out in the coming weeks, but neither a negative jobs report nor a steep inflation drop is expected,” she added.
