U.S. mortgage rates fell from an eight-month high last week, after approaching 7 percent in the previous week, as inflation eases ahead of this week’s Federal Reserve policy meeting.
The Fed’s aggressive policy of interest rate increases sent mortgage rates well above 7 percent last year, causing the once-booming housing market to stagnate.Rates have been slow to retreat from a nearly two-decade high, forcing many potential buyers out of the market.
The 30-year fixed-rate mortgage fell to 6.78 percent in the week that ended on July 20 from 6.96 percent the previous week, according to Freddie Mac on July 20. It’s the first decline since June and the biggest weekly drop since March.
The rate remains well above the year-ago average of 5.54 percent and the pre-pandemic average of 3.9 percent.
The average rate on a 15-year mortgage, which is popular among homeowners who plan to refinance, also fell to 6.06 percent, from the previous week’s 6.3 percent.
