Just in time for spring buying season, mortgage rates dropped for the third straight week, boosting demand from both homeowners and homebuyers. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.35% from 6.42%, with points falling to 0.61 from 0.62. Last year at this time, the 30-year fixed was 55 basis points higher.
“Mortgage rates declined last week as financial markets responded positively to the Middle East ceasefire and the lower trend in oil prices,” said Mike Fratantoni, MBA senior vice president and chief economist. “Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job market and homebuyers are experiencing a buyer’s market in most of the country, given the higher levels of inventory relative to last year.”
