MCLEAN, Va.—Mortgage rates declined for the second consecutive week, with the average 30-year fixed-rate mortgage falling to its lowest level in seven weeks, offering a modest boost to affordability as home purchase demand continues to strengthen, according to Freddie Mac.
The average rate on a 30-year fixed-rate mortgage fell to 6.43% for the week ending July 2, down from 6.49% the previous week and below the 6.67% average recorded during the same week a year ago. The average 15-year fixed-rate mortgage also declined, slipping to 5.79% from 5.84% a week earlier, Freddie Mac reported.
“The 30-year fixed-rate mortgage eased slightly this week averaging 6.43%,” said Sam Khater, chief economist at Freddie Mac. “With rates at a seven-week low and purchase demand continuing to edge higher, it's an encouraging sign as prospective homebuyers respond to modest improvements in affordability.”
Freddie Mac said the average 15-year fixed-rate mortgage was essentially unchanged from a year ago, when it averaged 5.80%, while the continued easing in longer-term rates could provide additional support for borrowers entering the housing market during the summer buying season.