Mortgage Rates Decrease Again

The 30-year fixed-rate mortgage (FRM) averaged 7.02% this week, down for the second week in a row from last week’s 7.09%, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Thursday.

This week’s numbers: 

  • The 30-year FRM averaged 7.02% as of May 16, 2024, down from last week when it averaged 7.09%. A year ago at this time, the 30-year FRM averaged 6.39%.
  • The 15-year FRM averaged 6.28%, down from last week when it averaged 6.38%. A year ago at this time, the 15-year FRM averaged 5.75%.

What the experts are saying: 

“Mortgage rates decreased for the second consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.” Economist, Jiayi Xu commented:

The Freddie Mac fixed rate for a 30-year mortgage continued to decline by 0.07 percentage points to 7.02% this week. Meanwhile, the 10-year treasury yields dropped below 4.4% following the release of April’s CPI data. This recent data indicated a slowdown in inflation, marking a positive shift from the consecutive accelerations observed since January 2024. While this improvement is a baby step forward, it’s expected to foster stability in mortgage rates at their current level and possibly even trigger further declines. Despite the halt in the upward trajectory of mortgage rates, they remain stubbornly close to 7%. To see mortgage rates dip further below 7%, persistent evidence showing inflation back on the path to 2% will be necessary.”

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