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The average interest rate on 30-year mortgages fell to 6.64% from 6.65% last week, while rates on 15-year mortgages fell to 5.82% from 5.89%.
NEW YORK – The average interest rate on a 30-year mortgage in the United States fell for the second week in a row, a modest but welcome boost for potential homebuyers in the midst of the spring homebuying season.
The interest rate fell to 6.64% from 6.65% last week, mortgage broker Freddie Mac said Thursday. A year ago, the rate averaged 6.82%.
The average rate has mostly fallen since reaching just over 7% in mid-January. When mortgage rates fall, they increase the purchasing power of homebuyers.
Borrowing costs for 15-year fixed-rate mortgages, popular with homeowners refinancing their mortgages, also fell this week, bringing the average rate to 5.82 percent from 5.89 percent last week. A year ago, the rate averaged 6.06 percent, according to Freddie Mac.
Mortgage rates are affected by factors including investors’ expectations in the bond market for the future.
The overall decline this year in the average 30-year mortgage interest rate follows moves in the 10-year Treasury yield, which lenders use as a guide for mortgage pricing.
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