Rates Fall Below 7%

Borrowing costs are on the decline again, with mortgage rates falling slightly. The 30-year fixed-rate mortgage dipped below 7%, averaging 6.9%. Freddie Mac claims further drops, albeit minor, could be on the way.

A new study from LendingTree showed that borrowers who gather quotes from multiple lenders stand to potentially save an average of $212 a month on their loan. That equals $2,544 a year and $76,410 over the life of the loan. 

While the 30-year fixed-rate mortgage dropped from the previous week, it is still higher than a year ago, when it averaged 6.7%. So the average is still 0.28% higher than a year ago. 15-year fixed-rate mortgages also dropped from 6.36% to 6.29% this week. But a year ago, it was 6.07%.

So despite dropping, the rates still seem too high for many home buyers. 

Purchasing applications have declined 4% and refinancing has dropped 7%. This all comes during what is supposed to be a busier time to buy homes (the spring season). All four regions of the country have shown affordability decline over the last 12 months. So the more things change, the more they really stay the same.