Here's some great news if you're in the market to buy a home or refinance: The average rate on a 30-year fixed-rate mortgage has reached its lowest level in two years.
According to Freddie Mac data, 30-year mortgage rates averaged 6.08% as of Thursday. That's the lowest level since mid-September 2022. It's down from 6.09% a week earlier and a significant drop from 7.31% seen a year ago.
"Given the downward trajectory of rates, refinance activity continues to pick up, creating opportunities for many homeowners to trim their monthly mortgage payment," Freddie Mac noted. "Meanwhile, many looking to purchase a home are playing the waiting game to see if rates decrease further as additional economic data is released over the next several weeks.
Thirty-year mortgage rates have dropped more than a percentage point since May.
Meantime, 15-year mortgage rates are averaging at 5.16%, down from 6.72% a year ago.
"Homebuyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers' budgets a much-needed boost," Edward Seiler, Associate Vice President for Housing Economics at the Mortgage Bankers Association, said in a statement. "MBA expects that lower mortgage rates, coupled with increasing housing inventory, will entice additional homebuyers to enter the housing market."
Mortgage applications jumped to the highest level in more than two years last week, driven largely by refinancing volumes. The MBA's refinancing index jumped 20.3% in the week ended September 20, to the highest level since April 2022.