The average interest rate on long-term U.S. mortgages has fallen for the second week in a row, reaching its lowest point in over a month, according to Freddie Mac.
The benchmark 30-year fixed-rate mortgage dropped to 7.24% this week, down from 7.32% the previous week. This marks a significant decrease from the 6.17% average rate recorded one year ago.
Rates for 15-year fixed-rate mortgages, a popular option for homeowners refinancing their loans, also saw a decline. The average rate for a 15-year fixed mortgage fell to 6.60% from 6.68% last week. A year ago, this rate stood at 5.41%.
Mortgage rates are influenced by a variety of economic factors, including inflation, Federal Reserve monetary policy, and investor expectations about the future performance of the economy. These rates generally track the yield on the 10-year Treasury note, which lenders use as a benchmark for pricing home loans.
The yield on the 10-year Treasury note was trading at 4.98% in midday trading on Thursday. Earlier in the month, it had surged above 5.30%, and it remains substantially higher than the 3.97% level observed prior to the conflict with Iran.