The average rate on a 30-year mortgage in the U.S. slipped to its lowest level in two years this week, boosting home shoppers’ purchasing power as they navigate a housing market with prices near all-time highs.
The rate dipped to 6.08% from to 6.09% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.31%.
The last time the average rate was lower was on Sept. 15, 2022, when it was 6.02%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, increased slightly this week. The average rate rose to 5.16% from 5.15% last week. A year ago, it averaged 6.72%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions. That can move the trajectory of the 10-year Treasury yield, which …