MCLEAN, Va. (AP) — The average rate on a 30-year U.S. mortgage has fallen to its lowest level in four months, welcome news for prospective homebuyers who have been held back by stubbornly high home financing costs.
The long-term rate fell to 6.63% from 6.72% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.47%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.75% from 5.85% last week. A year ago, it was 5.63%, Freddie Mac said.
Elevated mortgage rates have helped keep the U.S. housing market in a sales slump that began in early 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Home sales sank last year to their lowest level in nearly 30 years.
For much of 2025, the average long-term mortgage rate has remained relatively close to the 7.04% high for this year that it reached in mid-January.
The latest average rate on a 30-year mortgage is now just shy of 6.62%, the low point for this year set April 10.
The post Average rate on a 30-year mortgage drops to lowest level since April appeared first on Associated Press.
