30-year US mortgage rate falls to 6.67%

By A LEX VEIGA

The Associated Press

The average long-term U.S. mortgage rate fell for the third time in as many weeks, a welcome boost for homebuyers facing a housing market that’s been held back this year by a tight inventory of homes for sale.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan fell to 6.67% from 6.69% last week.

A year ago, the rate averaged 5.81%.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, also fell this week, slipping to 6.03% from 6.10% last week. A year ago, it averaged 4.92%, Freddie Mac said.

“Mortgage rates slid down again this week but remain elevated compared to this time last year,” said Sam Khater, Freddie Mac’s chief economist.

With the latest drop, the average rate on a 30-year mortgage is now at its lowest level since the last week of May, when it was at 6.57%.

The average climbed to 6.79%, its highest level so far this year, in the first week of June.

A decline in mortgage rates can save homebuyers hundreds of dollars a month in borrowing costs on a home loan.

That can make a big difference at a time when a historic-low level of homes on the market is spurring bidding wars that are helping keep prices from falling sharply after soaring in recent years.

The average rate on a 30year home loan is still more than double what it was two years ago, when the ultra-low rates spurred a wave of home sales and refinancing.