Mortgage rates have seen a slight decline for the first time in several weeks, according to a report from mortgage buyer Freddie Mac. The average rate for a 30-year fixed mortgage dipped to 6.84%, down from 6.85% the previous week, while a year ago it was at 6.95%.
Sam Khater, Freddie Mac’s chief economist, noted that mortgage rates have remained stable within a narrow range over recent months. He emphasized that this week’s modest decline, alongside improving inventory and slower house price growth, offers a positive outlook as the country celebrates National Homeownership Month.
Additionally, the average rate for a 15-year fixed mortgage fell to 5.97%, slightly down from 5.99% last week, contrasting with the 6.17% average from the same time last year.
Despite the average rate for a 30-year mortgage still remaining close to the 7% mark, U.S. home listing prices have reportedly reached an all-time high. This trend suggests a potential shift towards a buyers’ market, driven by increased inventory and changing demand dynamics. A recent report by Redfin indicated that the total value of homes in the U.S. jumped by 20.3% over the past year, reaching a record $698 billion.
Industry experts, including Redfin chief economist Daryl Fairweather, anticipate a market shift in the coming months, as more sellers are entering the market compared to buyers.
The current trends in mortgage rates and home values bring a glimmer of hope for prospective homebuyers, as increasing inventory and stable prices could create more favorable conditions for purchasing homes in the near future.