The average interest rate for a 30-year mortgage in the United States has once again decreased this week, reaching its lowest point since late October.
The rate fell to 6.69%, down from 6.81% the previous week, according to data from Freddie Mac released on Thursday. This time last year, the average rate stood at 7.03%.

In addition, the borrowing costs for 15-year fixed-rate mortgages, which are favored by homeowners looking to refinance for a better rate, also saw a reduction this week. The average rate for these loans dropped to 5.96%, down from 6.1% last week. A year ago, the average for this mortgage type was 6.29%, as reported by Freddie Mac.

Mortgage rates are affected by various factors, notably the fluctuations in the yield on U.S. 10-year Treasury bonds, which serve as a benchmark for lenders when determining the pricing of home loans.
The average 30-year mortgage rate has predominantly been on the rise since it reached a two-year low of 6.08% in late September. The combination of high mortgage rates and increasing home prices has made homeownership unattainable for many prospective buyers.

As a result, U.S. home sales are poised to experience their lowest performance since 1995, highlighting the challenges facing potential homeowners in the current market.