The U.S. 30-year fixed mortgage average fell to 7.18% on Nov. 5 for a third consecutive week, Freddie Mac reported, easing borrowing costs for prospective homebuyers but remaining above its year-earlier level.
The benchmark declined from 7.40% on Oct. 15 to 7.32% on Oct. 22 and 7.24% on Oct. 29. The latest reading leaves it 0.22 percentage point lower than three weeks earlier, but 0.96 percentage point above the 6.22% average recorded a year ago.
Freddie Mac's 15-year fixed mortgage average also edged down, to 6.57% from 6.60%. It was higher than the 5.50% average a year earlier. The latest results follow EconoTimes' earlier coverage of the 7.24% rate and mortgage applications.
Sam Khater, Freddie Mac's chief economist, said the decline was “improving the environment for prospective homebuyers” amid strong economic growth.
The Primary Mortgage Market Survey is based on rates offered for conventional, conforming, fully amortizing home-purchase loans. Its borrower profile assumes excellent credit and a 20% down payment, so the average is not a guaranteed rate for an individual buyer. Freddie Mac tracks offers from Thursday through Wednesday and releases the results on Thursdays at noon ET.
Freddie Mac's next rate release is scheduled for Thursday, Nov. 12.
