Mortgage Rates Drop to Lowest Levels Since September 2022 — What It Means for Buyers and Sellers
Mortgage rates continue to trend downward, reaching their lowest average levels since September 2022. As of Thursday, the 30-year fixed-rate mortgage averaged 6.01%, while the 15-year fixed averaged 5.35%, according to Freddie Mac — marking the second consecutive week of declines. A year ago, the 30-year rate stood at 6.85%, highlighting a notable improvement in borrowing conditions.
Lower rates are already fueling a surge in refinancing activity, helping many homeowners reduce their monthly payments and strengthen their financial position. However, despite improved affordability, overall home sales and pending contracts remain soft, largely due to affordability challenges and typical winter market slowdowns.
Economists remain optimistic that the upcoming spring season could spark renewed buyer momentum. Applications for home purchases are higher compared to last year, and millions of households may now qualify for financing at today’s rates. The National Association of Realtors notes that as many as 5.5 million additional households could enter the market, potentially bringing an estimated 550,000 new buyers this year.
While recent data shows slower contract activity and declining existing home sales, the combination of falling rates, seasonal inventory growth, and improved purchasing power could set the stage for a more active spring housing market.
Tina Lucarelli - Realtor - The ONE Luxury Properties, Inc. (310) 738-8089
