Average US thirty year mortgage rate remains flat at seven point four percent

Average long term mortgage rates in the United States held steady this week. Hays Post and AP News both reported that mortgage buyer Freddie Mac announced the benchmark 30-year fixed-rate mortgage was unchanged at 7.40%. One year ago, the average rate stood at 6.27%. As FTMQ Real Estate reported earlier, rates on 30-year fixed loans recently crossed back over the seven percent mark amid inflation risks and rising yields. [1][3][7]

The latest reading ends a seven-week climb for the average rate, Hays Post reported. The current 7.40% level is the highest since Nov. 16, 2023, when the average rate reached 7.44%. Higher long-term rates continue to keep overall borrowing costs elevated for home buyers across the country. [1]

Meanwhile, borrowing costs for shorter-term home loans experienced a slight decline. Hays Post reported that the average rate on 15-year fixed-rate mortgages, which are frequently used by borrowers refinancing existing loans, eased to 6.71% this week from 6.73% last week. One year ago, the 15-year fixed average rate was 5.52%. [1]

Mortgage loans are commonly aggregated and packaged into residential mortgage-backed securities that investors can purchase. Home loan borrowing rates remain heavily influenced by broader macroeconomic factors, including inflation metrics and Federal Reserve policy expectations. [1][5]