Mortgage rates have fallen to their lowest levels in over a year, with the average 30-year fixed-rate mortgage now at 6.27%, down from 6.44% a week ago. The 15-year fixed-rate mortgage also decreased to 5.53%, providing relief to homebuyers and homeowners looking to refinance.
This drop comes as inflation moderates and the Federal Reserve is expected to cut interest rates at its upcoming meeting. While the rate cut should bring some additional relief, experts caution that mortgage rates likely won’t return to the historically low levels seen during the pandemic.
Though today’s mortgage rates have dropped significantly from the highs seen earlier this year, they remain elevated compared to the historic lows of 2020 and 2021, when mortgage rates fell to 2-3%. At the start of 2024, rates hovered around 7%, and while today’s average 30-year rate of 6.27% marks a considerable decline, it’s still more than double what it was just a few years ago.
Despite the lower rates, high home prices and limited housing supply continue to affect affordability, making it important for buyers to carefully evaluate their options. For those considering buying or refinancing, now is an opportune time to compare offers from multiple lenders.
