U.S. mortgage rates drop to their lowest level since September 2022

Investing.com – According to data released by Freddie Mac on Thursday, U.S. mortgage rates have fallen to their lowest levels in over three years.

The average rate for a 30-year fixed mortgage dropped to 6.01%, down from 6.09% last week. This is the lowest since September 2022. In comparison, the rate was 6.85% a year ago.

The average rate for a 15-year fixed mortgage also declined, reaching 5.35% this week, down from 5.44% last week. A year ago, the 15-year rate averaged 6.04%.

“Mortgage rates have decreased again this week, now reaching their lowest level since September 2022,” said Sam Khater, Chief Economist at Freddie Mac. “This lower interest rate environment not only improves affordability for potential homebuyers but also strengthens homeowners’ financial positions.”

Khater noted that refinancing application activity has more than doubled over the past year, enabling many recent buyers to reduce their annual mortgage payments by thousands of dollars.

The U.S. housing market, which has been troubled by high interest rates for years, appears to be showing signs of improvement as incomes rise and borrowing costs decline.

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