Housing News

Mortgage Rates Move Down for First Time in a Month

Mortgage interest rates reversed course over the last week and fell for the first time in a month.

Rates averaged 6.37% for 30-year, fixed-rate loans in the week ending April 9, according to Freddie Mac data. That’s down from 6.46% in the previous week.

Importantly for homebuyers and homeowners hoping to refinance their mortgages, rates are also down from one year ago at this time when they averaged 6.62%.

“The decrease in rates represents a positive development for prospective homebuyers and could spark a more favorable spring homebuying season than last year,” said Freddie Mac Chief Economist Sam Khater in a statement.

The decrease comes at an opportune time for homebuyers and homeowners alike, as the spring housing market is about to peak.

On a national level, home list prices are falling a bit. In March, they came down 2.2% year-over-year to a median $415,450, according to Realtor.com data.

Beyond that, the number of homes on the market is on the uptick, climbing 8.1% annually in March, according to Realtor.com. That increase is driving some home sellers to reduce their listing price.

That combination, plus lower mortgage rates, are making the housing market more affordable. 

Even small drops in rates can help homebuyers stretch their budget a little further.

It can also help homeowners who are seeking a refinance, especially those who bought their home when mortgage rates were near 8%.

They may be able to refinance into a lower rate that could save them money.