Mortgage rates fell to 6.39% from 6.43% this week. This can be seen as a small incentive for property buyers. At the same time, a year ago the rate was, on average, 5.27%. The average rate declined for five weeks in a row before rising during the last two weeks of April this year.
For potential home buyers, this trend is favorable. The average mortgage rate for 30 years in the fall of 2022 reached the highest in the last 20 years and amounted to 7.08% after several months of Fed rate hikes and consistently high inflation. High rates can lead to higher costs for real estate buyers.
According to the National Association of Realtors, second homes in the United States began to be sold by 2.4% less in the period from February to March 2023 and by 22% compared to 2022. The average mortgage rate for 15 years with a fixed interest rate increased this week to 5.76%. Last week it was 5.71%.