Mortgage rates fell for a fourth straight week, according to weekly data compiled by Freddie Mac.
The 30-year fixed-rate mortgage (FRM) averaged 6.28% as of April 6, down from 6.32% recorded last week. One year ago, the 30-year FRM averaged 4.72%.
Meanwhile, the 15-year fixed-rate mortgage averaged 5.64%, up from last week when it averaged 5.56%. At the same time in 2022, the 15-year FRM averaged 3.91%.
“Mortgage rates continue to trend down entering the traditional spring homebuying season,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, those in the market to buy are facing a number of challenges, not the least of which is the low inventory of homes for sale, especially for aspiring first-time homebuyers.”
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A cooling job market marked by tech layoffs, including those at Amazon and Apple, as well as Disney, along with fewer job openings has convinced the market the Federal Reserve will be able to pause rates soon.
Jobless claims came in higher than expected Thursday, reinforcing the idea within the market that the Fed will relax with rate hikes before unemployment gets too bad.
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Among other factors, lenders rely on the current interest rates and also on the expected interest rate over the mortgage’s lifetime when choosing what mortgage rates to offer.
As the expected future interest rate falls it takes pressure off mortgage rates, allowing lenders to offer lower rates while still making a profit.