The cost of borrowing for home loans has decreased once more this week, with the average rate on a 30-year mortgage reaching its lowest point since early April. As reported by Freddie Mac on Thursday, the rate dropped to 6.87%, down from 6.95% the previous week. This time last year, the average rate stood at 6.67%, according to ABC News.
This marks the third consecutive week of declining mortgage rates, which have largely remained around 7% since April. Higher mortgage rates can significantly increase monthly costs for borrowers, thereby restricting their purchasing power. According to Freddie Mac, the average rate on a 15-year fixed-rate mortgage, commonly chosen by those refinancing, also fell this week to 6.13% from 6.17%. A year ago, this rate was 6.03%.
