Data from mortgage finance company Freddie Mac showed that the average interest rate on 30-year mortgage loans in the United States fell this week to 7.32%.
This marks the first decline since late August.
Freddie Mac said the average rate on the benchmark 30-year fixed-rate mortgage dropped to 7.32%, down from 7.40% last week.
A year ago, the average rate stood at 6.19%.
The cost of borrowing through 15-year fixed-rate mortgages also declined this week.
These loans are often used by borrowers refinancing their mortgages, according to the Associated Press.
The average rate on 15-year loans fell to 6.68%, compared with 6.71% last week, while it stood at 5.44% a year ago.
The US housing market has been in a slump this year, largely due to elevated mortgage interest rates.
These higher rates add hundreds of dollars a month to borrowers’ costs.
This has curbed the purchasing power of prospective homebuyers and pushed many of them to delay their decision to buy.
Read also:
