Current:Home > MarketsMortgage rates ease for second straight week, leaving average rate on a 30-year home loan at 6.95% -Infinite Edge Capital
Mortgage rates ease for second straight week, leaving average rate on a 30-year home loan at 6.95%
View
Date:2025-04-13 17:56:04
LOS ANGELES (AP) — Mortgage rates eased again this week, though the latest pullback leaves the average rate on a 30-year home loan at close to 7%, where it’s been much of this year.
The rate fell to 6.95% from 6.99% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.69%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week, lowering the average rate to 6.17% from 6.29% last week. A year ago, it averaged 6.10%, Freddie Mac said.
“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” said Sam Khater, Freddie Mac’s chief economist.
Home loan rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Yields have eased recently following some economic data showing slower growth. On Thursday, a report showed inflation at the wholesale level fell from April into May. That followed a surprisingly encouraging update on inflation at the consumer level a day earlier.
Signs that the economy is cooling can drive inflation lower, which could persuade the Fed to lower its short-term interest rate from its highest level in more than two decades.
Federal Reserve officials said Wednesday that inflation has fallen further toward their target level of 2% in recent months but signaled that they expect to cut their benchmark interest rate just once this year. That’s down from their previous projection of three cuts.
Until the Fed begins lowering its short-term rate, long-term mortgage rates are unlikely to ease significantly, economists say.
The average rate on a 30-year mortgage remains near a two-decade high, adding hundreds of dollars a month in costs on a home loan, limiting homebuyers’ purchasing options.
Elevated mortgage rates dampened home sales this spring homebuying season. Sales of previously occupied U.S. homes fell in March and April as home shoppers contended with rising borrowing costs and prices.
The recent pullback in mortgage rates has spurred a pickup in home loan applications, which jumped nearly 16% last week from a week earlier, according to the Mortgage Bankers Association.
“A further decline in mortgage rates, coupled with reports of rising inventory levels in markets across the country, is good news for prospective homebuyers this summer,” said MBA CEO Bob Broeksmit.
veryGood! (3211)
Related
- US appeals court rejects Nasdaq’s diversity rules for company boards
- LSU's Brian Kelly among college football coaches who left bonus money on the table
- Texas Supreme Court halts Robert Roberson's execution after bipartisan fight for mercy
- Michael Keaton and Mila Kunis play father and daughter in ‘Goodrich’
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- La Nina could soon arrive. Here’s what that means for winter weather
- One Direction members share joint statement on Liam Payne death: 'Completely devastated'
- Democratic incumbent and GOP challenger to hold the only debate in Nevada’s US Senate race
- Taylor Swift makes surprise visit to Kansas City children’s hospital
- These Sweet Sabrina Carpenter and Barry Keoghan Pics Will Have You Begging Please Please Please for More
Ranking
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Niall Horan's Brother Greg Says He's Heartbroken Over Liam Payne's Death
- 3 workers remain hospitalized after collapse of closed bridge in rural Mississippi killed co-workers
- One Direction's Harry Styles, Niall Horan, Louis Tomlinson & Zayn Malik Break Silence on Liam Payne Death
- Toyota to invest $922 million to build a new paint facility at its Kentucky complex
- Liam Payne was 'intoxicated,' 'breaking the whole room' before death from fall: 911 call
- Review of Maine police response to mass shooting yields more recommendations
- Republicans appeal a Georgia judge’s ruling that invalidates seven election rules
Recommendation
Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
'Ghosts' Season 4 brings new characters, holiday specials and big changes
Prosecutors ask Massachusetts’ highest court to allow murder retrial for Karen Read
Harry Styles mourns One Direction bandmate Liam Payne: 'My lovely friend'
North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
How Liam Payne's Love for Son Bear Inspired Him to Be Superhero for Kids With Cancer in Final Weeks
Arizona prosecutors drop charges against deaf Black man beaten by Phoenix police
Canceling your subscription is about to get a lot easier thanks to this new rule