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The numbers: Mortgage rates continue to fall, making homeownership slightly more affordable for millions of Americans.
The 30-year fixed-rate mortgage averaged 6.09% as of Feb. 2, according to data released by Freddie Mac on Thursday.
That’s down 4 basis points from the previous week — one basis point is equal to one-hundredth of a percentage point.
Last week, the 30-year was at 6.13%. Last year, the 30-year was averaging at 3.55%
Rates were at the lowest level since mid-September 2022.
The average rate on the 15-year mortgage fell to 5.14%.
Despite a drop in rates, the gloomy economic climate has given homebuyers reason to pause. Mortgage demand dropped 9% in the latest week, according to a separate report by the Mortgage Bankers Association.
What are they saying? “This one-percentage-point reduction in rates can allow as many as 3 million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price,” Sam Khater, chief economist at Freddie Mac, said in a statement.
Market reaction: The yield on the 10-year Treasury note
TMUBMUSD10Y,
dropped below 3.4% during the afternoon trading session on Thursday.
Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com
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