30-year mortgage rates drop to 6.73%, hitting lowest point since February

The average interest rate for a 30-year mortgage dropped this week to its lowest level since February, providing some relief to potential homebuyers amidst sky-high home prices. According to Freddie Mac, the rate decreased from 6.78% to 6.73%. A year ago, it stood at 6.9%. Additionally, rates for 15-year fixed-rate mortgages, often favored by homeowners looking to refinance, also declined to 5.99% from 6.07% last week, with last year’s average at 6.25%.

Following a peak of 7.79% in October, the average rate for 30-year mortgages has been fluctuating around 7% this year, significantly higher than three years ago when it was less than half the current rate. These elevated mortgage rates, resulting in increased monthly expenses for borrowers, have deterred potential homebuyers, contributing to the ongoing housing market downturn, now in its third year. In June, sales of existing homes in the U.S. decreased for the fourth consecutive month, while sales of new single-family homes hit the slowest pace since November.