Long-term mortgage rates drop to 2-year low

Published On Sep 26, 2024, 12:03 PM

Long-term mortgage rates in the U.S. have dropped to their lowest levels in two years, according to Freddie Mac's latest survey. The average rate on a 30-year fixed mortgage is now 6.08%, down from 6.09% last week, and significantly lower than the 7.31% from a year ago. This decline is noted as refinancing activity is increasing, giving homeowners the opportunity to reduce their monthly payments. However, many potential homebuyers are waiting to see if rates will drop further before making purchase decisions, as approximately 80% of current mortgage holders enjoy rates below 5%. Meanwhile, the 15-year fixed mortgage rate experienced a slight increase to 5.16%.