- U.S. mortgage rates have fallen to their lowest level in 15 months, with the average 30-year mortgage rate at 6.46%.
- Despite the drop, the reduction is not substantial enough to significantly boost housing demand, according to analysts.
- The rate decrease follows from last week’s average of 6.49%, but further declines are needed to stimulate the market.
New York, August 23 (FFN) – Interest rates on the most popular home loans in the United States dropped last week to their lowest level in 15 months. However, analysts note that the decrease is still insufficient to significantly improve housing market demand, as reported by Reuters.
According to mortgage agency Freddie Mac, the average rate for the benchmark 30-year mortgage fell to 6.46% this week (ending August 22). This marks the lowest level since May 2023.
Compared to the previous week, this rate saw a slight decrease from 6.49%. In contrast, the rate was 7.23% during the same period last year.
Sam Khater, chief economist at Freddie Mac, expects mortgage rates to continue decreasing in light of upcoming economic data. However, he also noted that despite the gradual reduction, mortgage rates are still not low enough to encourage potential homebuyers. “We believe that mortgage rates would need to decrease by another percentage point to significantly boost demand from buyers,” Khater said.
| Mortgage Rate | Previous Week | Current Week | Same Period Last Year |
|---|---|---|---|
| 30-Year Fixed Rate | 6.49% | 6.46% | 7.23% |
