The numbers: Mortgage rates dipped for the fifth week in a row, giving would-be home buyers a boost as the cost of borrowing eases.
The 30-year fixed-rate mortgage averaged 6.27% as of April 13, according to data released by Freddie Mac
FMCC,
+6.87%
on Thursday.
The 30-year rate was at the lowest level in two months.
That’s down one basis point from the previous week. One basis point is equal to one hundredth of a percentage point.
Rates were last at this level in early February. When rates dropped then, existing home sales surged. And mortgage demand is up is already up, according to the Mortgage Bankers Association’s latest weekly report.
Last week, the 30-year rate was at 6.28%. Last year, the 30-year rate was averaging 5%.
The average rate on the 15-year mortgage fell to 5.54% from 5.64% the previous week. The 15-year rate was at 4.17% a year ago.
Freddie Mac’s weekly report on mortgage rates is based on thousands of applications received from lenders across the country, which are submitted to Freddie Mac when a borrower applies for a mortgage.
Separate data by Mortgage News Daily said that the 30-year fixed-rate mortgage was averaging 6.42% as of Thursday morning.
What Freddie Mac said: “Incoming data suggest inflation remains well above the desired level but showing signs of deceleration,” Sam Khater, chief economist at Freddie Mac, said in a statement.
“These trends, coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer,” he added.
What are they saying? “Prospective homebuyers responded to lower rates last week, leading to an 8% jump in applications to buy a home,” Bob Broeksmit, president and CEO of the MBA, said in a statement.
“The likelihood of even lower rates in the months ahead should lead to increased demand, despite recent signs of a slowing economy and tighter financial conditions,” he added.
Market reaction: The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.519%
was trading above 3.4% during the afternoon trading session on Thursday.
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