Mortgage Rates Drop for Seventh Straight Week—What It Means for Home Buyers
The real estate market is starting to heat up as mortgage rates continue their downward trend. For the seventh consecutive week, the average 30-year fixed-rate mortgage has declined, marking its largest drop since mid-September. This dip in rates has sparked renewed interest among home buyers, with mortgage applications for home purchases jumping by 9% this week, according to the Mortgage Bankers Association (MBA).
Spring is traditionally a busy time for home buying, and this year is shaping up to be no different. “This is a period where we typically see purchase activity ramp up—and purchase applications continued to run ahead of last year’s pace,” said Joel Kan, MBA Deputy Chief Economist.
More Buying Power for Home Buyers
Freddie Mac reports that the 30-year fixed-rate mortgage now averages 6.63%, down from last week’s 6.76%. The 15-year fixed-rate mortgage also saw a drop, averaging 5.79%, compared to 5.94% the previous week.
This decline in rates is great news for prospective home buyers. Lower interest rates mean increased purchasing power, which can make homeownership more affordable. For example, at today’s 30-year fixed rate of 6.63%, a buyer purchasing a $400,000 home with a 20% down payment would have a monthly mortgage payment of approximately $2,050. With a 10% down payment, that payment would be around $2,306.
A Boost for Refinancing Too
It’s not just new home buyers who are benefiting—existing homeowners are also jumping on this opportunity to refinance. MBA reported a 37% surge in refinance applications this week, up a staggering 83% compared to the same time last year.
What This Means for the Market
Jessica Lautz, Deputy Chief Economist at the National Association of REALTORS®, noted that home buyers are now in a favorable position as they encounter more inventory and improved rates ahead of the spring market. With lower rates and increased activity, the real estate market is poised for a strong season.
If you've been waiting for the right time to buy a home or refinance, this could be the opportunity you've been looking for. Ready to explore your options? Reach out today to see how these lower mortgage rates can work in your favor!
