MCLEAN, Va. (AP) — The average long-term U.S. mortgage rate has fallen to its lowest point in more than three years.
Freddie Mac announced Thursday that the benchmark 30-year fixed mortgage rate decreased to 6.06% this week, down from 6.16% last week. The rate averaged 7.04% one year ago.
The last instance the average rate was lower occurred on Sept. 15, 2022, when it stood at 6.02%.
This decline in mortgage rates can increase homebuyers' purchasing power. The housing market has been experiencing a significant downturn following years of high prices and elevated borrowing costs that excluded many potential homeowners.
Borrowing costs for 15-year fixed-rate mortgages, commonly used for refinancing, also decreased this week, falling to 5.38% from 5.46% last week. Freddie Mac stated the rate averaged 6.27% a year ago.