Mortgage Rates Hit Lowest Mark In 15 Months

WASHINGTON–Mortgage rates last week hit their lowest mark since May of 2023.

With economic data perhaps indicating a slowdown and with new predictions the Federal Reserve could cut rates by as much as 50 basis points when it next meets, the 30-year fixed-rate mortgage averaged 6.47% last week, according to Freddie Mac. That’s down substantially from one week earlier when the average was 6.73%. The one-week drop was the biggest since late December.

The 30-year mortgage rate average peaked (so far) earlier this year at 7.22%.

Growing Purchasing Power

“The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move,” Sam Khater, Freddie Mac’s chief economist, said in a released statement. “Additionally, this drop in rates is already providing some existing homeowners the opportunity to refinance, with the refinance share of market mortgage applications reaching nearly 42%, the highest since March 2022.”

Affordability remains tough — but lower mortgage rates may help. Economists have also said they expect rental rates to decline.

“Homebuyers who were priced out a few months ago should re-check whether they can enter the homebuying market if they have secure jobs,” Lawrence Yun, chief economist of the National Association of Realtors, said in a released statement.

The next reading on inflation will come this Wednesday when the Consumer Price Index for July will be released.

Housing Inventory Grows

According to data quoted by CNN, total housing inventory has increased every month this year so far, registering at 1.32 million units at the end of June, up 3.1% from May and a significant 23.4% higher from a year earlier, NAR figures show.