The interest rates on home loans, commonly known as mortgage rates, witnessed a minor dip this week, as reported by the mortgage provider Freddie Mac. The average percentage for a 30-year Fixed-Rate Mortgage (FRM) stood at 6.79 percent as of March 28, 2024, a slight decrease from the previous week when it was recorded at 6.87 percent. To compare, the same time last year, the 30-year FRM was averaging at 6.32 percent.
The 15-year FRM also experienced a reduction, with the present rate of 6.11 percent compared to last week's average of 6.21 percent. During this time in the previous year, the rate of the 15-year FRM had been 5.56 percent.
"Mortgage rates have seen a minor decrease this week, which could ease the budget constraint for some potential homebuyers," commented Sam Khater, the Chief Economist at Freddie Mac. He added that the current data indicating a rise in existing home sales, signifying improved inventory, provides encouragement. However, with the rates still hovering around seven percent, watchful eyes are looking for signs of inflationary cool-off in hopes of potentially lower rates.
