HEWITT, Texas (KXXV) — Freddie Mac reports the 30-year fixed mortgage rate has dropped to its lowest point in months, spurring refinancing activity.
- The average 30-year fixed rate fell to 6.27% last week — down from the prior week and well below the rate from a year ago
- Realtor Haleema Rahim says buyers should act quickly before home prices react to the shift
- One year ago, the rate was above 7%
Homebuyers and homeowners looking to refinance are getting some relief. For the second straight week, mortgage rates have declined, with Freddie Mac reporting the average 30-year fixed rate fell to 6.27% last week — down from the prior week and well below the rate from a year ago.
The drop in rates is fueling more refinance applications, according to Freddie Mac. Realtor Haleema Rahim says buyers should act quickly before home prices react to the shift.
“It really is a big decrease, and people should definitely take advantage of it,” Rahim said. “They are expecting it to go even lower by the end of this year. But the best thing I always say is, ‘You marry a house, not the rate.’ The rate can always be refinanced. The only issue is when rates go down, prices will go up.”
Rahim notes that many sellers have been sitting on listings for months due to higher interest rates. If borrowing costs keep falling, she expects more homes to sell and prices to rise.
Freddie Mac says the combination of lower rates, more housing inventory, and slower price growth is making conditions favorable for both buyers and sellers.
Rahim adds that buyers should move if they are financially ready.
“They are expecting it to reach at least six percent by the end of this year,” she said. “If you’re ready to buy and finances allow, do it. You can always refinance if rates go lower, but locking in now is still much better than the last few years we’ve seen.”
Market Snapshot:
- Current 30-year fixed rate: 6.27%
- One year ago: Above 7%
- Trend: Falling for two consecutive weeks
- Impact: Increased refinancing applications, stronger buyer interest
Bottom Line:
Mortgage rates are on a downward trend, but industry experts say that could quickly lead to rising home prices. Buyers who have been waiting may find now is the time to make a move.
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