If you’ve been keeping an eye on mortgage rates, we’ve got some good news! This week, the average rate on a 30-year mortgage fell to its lowest level since early February, giving prospective homebuyers a much-needed break. According to Freddie Mac, the rate dipped to 6.73% from last week’s 6.78%.
It may not seem like a significant drop but let's put this in perspective.
The average rate was 6.9% a year ago, so we’re seeing a slight downward trend. This small decrease can translate into significant savings over the life of your loan. So, if you’ve been on the fence about buying a home, now might be a good time to consider jumping in.
For those of you who are considering refinancing, there’s good news for you too!
The average rate on a 15-year fixed-rate mortgage, which is popular with homeowners looking to refinance, also fell this week. It’s now at 5.99%, down from 6.07% last week. A year ago, it was averaging 6.25%.
Refinancing at these lower rates could save you money on interest and shorten your loan term.
It's worth noting that just last October, the average rate on a 30-year mortgage hit a 23-year high of 7.79%. Since then, it has mostly hovered around 7%.
So, whether you’re a first-time homebuyer or looking to refinance, keep an eye on those rates. A small change can make a big difference in your mortgage payments and overall financial health.
