The average 30-year fixed-rate mortgage (FRM) is now at 6.35% compared to 6.50% last week, according to Freddie Mac. That marks the largest one-week drop so far this year, with the rate also at its lowest level since October 2024. In addition, the 15-year FRM sits at 5.5%, down from 5.6%, and is also at its lowest point since October 2024.
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A concerning labor market update that showed 263,000 initial jobless claims, the highest since October 2021, caused the 10-year Treasury yield to fall. Both 15- and 30-year mortgages closely track this yield.
Rate Relief Draws Buyers Off the Sidelines
Homebuyers have begun to creep back into the market in light of the falling rates. “Mortgage rates are headed in the right direction and homebuyers have noticed, as purchase applications reached the highest year-over-year growth rate in more than four years,” said Freddie Mac chief economist Sam Khater.
Affordability is still stretched, but a pullback in rates gives buyers some breathing room. Sellers, on the other hand, may finally see more interest after a period of frozen demand.
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