Mortgage rates continue to fall, making homeownership affordable for millions of Americans

Mortgage rates continue to fall, making homeownership affordable for millions of Americans

Mortgage rates are dropping to the lowest level since mid-September. Freddie Mac says 3 million more people now qualify for a home loan.

Freddie Mac said the average 30-year mortgage rate is 6.09% in his latest weekly Thursday survey.

The rates were 3.55% over the same period last year, compared to 6.09% today for 30 years.

The average 30-year fixed-rate mortgage was 6.09% as of February 2, according to data released by Freddie Mac on Thursday.

This is four basis points lower than the previous week - one basis point equals one-hundredth of a percentage point.

Last week, the '30s were at 6.13%. Last year, the 30-year average was 3.55%

Rates were at their lowest level since mid-September 2022.

The average 15-year mortgage rate has fallen to 5.14%.

Despite falling prices, the bleak economic climate gave homebuyers a reason to pause. According to a report from the Mortgage Bankers Association, mortgage demand fell 9% in the latest week.

What are they saying? "This one percentage point reduction in rates could allow up to 3 million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the average home price," said Sam Khater, chief economist at Freddie Mac statement.