Mortgage rates, or interest rates on home loans, have fallen to their lowest level in over a year, according to mortgage provider Freddie Mac (FMCC.OB).
As of August 8, 2024, the 30-year Fixed Rate Mortgage (FRM) averaged 6.47 percent, down from the previous week's average of 6.73 percent. A year ago, the 30-year FRM stood at 6.96 percent.
The 15-year FRM averaged 5.63 percent, a decrease from last week's 5.99 percent. At this time last year, the 15-year FRM was at 6.34 percent.
"Mortgage rates plunged this week to their lowest level in over a year following the likely overreaction to a less-than-favorable employment report and financial market turbulence, despite an economy that remains on solid footing," said Sam Khater, Freddie Mac's Chief Economist.
"The decline in mortgage rates increases prospective homebuyers' purchasing power and should spark their interest in making a move. Additionally, this drop in rates is already providing existing homeowners an opportunity to refinance, with the refinance share of market mortgage applications reaching nearly 42 percent, the highest since March 2022."
