US Mortgage Rates Decline

The average rate on a 30-year mortgage in the United States has declined for three consecutive weeks, reaching 6.62% from 6.67%. This trend, reported by United States — Freddie Mac, is seen as a welcome reversal for homebuyers during the spring homebuying season, as it boosts purchasing power and could help alleviate the sales slump experienced since 2022. The 15-year fixed-rate mortgage also saw a decline. Mortgage rates are influenced by factors such as bond market expectations for inflation, global demand for U.S. Treasurys, and the United States — Federal Reserve's interest rate policy. The overall decline in rates loosely follows moves in the 10-year Treasury yield, which has fallen amid signs of a slowing economy and worries that tariffs imposed by the Trump administration could hurt economic growth and fuel inflation. Despite easing rates, rising home prices continue to drive up the cost of homeownership, as noted by Redfin. The Mortgage Bankers Association and the National Association of Realtors have reported upticks in loan applications and pending home sales, respectively, suggesting potential increases in sales in the coming months.