Housing News

Mortgage Interest Rates Stabilize, Tick Down a Little

Lately, mortgage interest rates have been on a wild ride. They fell, then they rose, and now they appear to be stabilizing and slowly dropping.

This makes buying a home a little more attainable at a time when most folks are seeking affordability.

Rates averaged 6.76% for 30-year, fixed-rate loans in the week ending May 1, according to Freddie Mac data. That’s down from 6.81% the previous week.

It’s also a significant drop from this time last year when rates averaged 7.22%.

“Mortgage rates again declined this week,” Freddie Mac Chief Economist Sam Khater said in a statement.

That’s good for homebuyers who are also seeing home prices fall in certain parts of the country and more sellers cut prices. Additionally, more homes have been going on the market giving buyers more choices.

“More inventory and more ability for buyers to negotiate on price and concessions is a positive as the spring heats up,” said Bright MLS Chief Economist Lisa Sturtevant in a statement. The multiple listing service covers the mid-Atlantic region.

The decline in rates may also help homeowners save on their monthly mortgage payments if they decide to refinance their loans.

Rates have been more volatile recently as a result of economic uncertainty due, in part, to tariffs.

Speculation on when the U.S. Federal Reserve will lower its own interest rates can also influence mortgage rates. The Fed’s rates are different from mortgage rates but generally move in the same direction.  

“Predicting mortgage rates is hard in the best of times, but in the current market it is even more difficult to know which way rates are going to go in any given week,” said Sturtevant.