Mortgage Rates Ease From Nine-Month High
The average long-term U.S. mortgage rate fell this week from its highest level in nine months, offering some relief to prospective homebuyers.
The benchmark 30-year fixed mortgage rate dipped to 6.48% from 6.53% last week, mortgage buyer Freddie Mac said Thursday. The average rate remains below the 6.85% recorded a year ago.
Lower mortgage rates give homebuyers more purchasing power.
Rates have mostly trended higher since the war with Iran began, disrupting the passage of tankers carrying crude oil from the Persian Gulf to customers worldwide. That has driven oil prices sharply higher, a key factor in inflation.
Mortgage rates are influenced by several factors, including Federal Reserve interest rate decisions and bond investors’ expectations for the economy and inflation. They generally track the 10-year Treasury yield, which lenders use as a guide when pricing home loans.
