Mortgage rates, the interest rates applied to home loans, saw a decline following a four-week increase, as indicated by Freddie Mac, a leading mortgage provider.
As of March 7, 2024, the average rate for a 30-year fixed-rate mortgage (FRM) fell to 6.88 percent, down from the previous week's average of 6.94 percent. In comparison, the average rate for the same mortgage type was 6.73 percent a year ago.
For a 15-year FRM, the average rate was 6.22 percent, marking a decrease from the previous week's average of 6.26 percent. One year ago, the average rate for a 15-year FRM was 5.95 percent.
According to Freddie Mac's Chief Economist, Sam Khater, the application uptick this week—its first rise in six weeks—is proof that purchase demand remains sensitive to fluctuations in interest rates. Khater highlighted that mortgage rates are a significant barrier for prospective homebuyers eager to enter the market and emphasized the importance of comparing rates from different lenders due to potential variances.
