The timing couldn’t be better: it’s homebuying season, and mortgage rates have dropped to their lowest point since March. According to data from Zillow, the 30-year fixed-rate mortgage averaged 6.67% in the week ending July 18, a 10 basis point decrease from the previous week. This is the lowest average rate we’ve seen since March 14.
As inflation eases, mortgage rates are following suit. With the consumer price index dipping below 3% in June for the first time since March 2021, interest rates are on a downward trend. The 30-year mortgage rate has fallen over a quarter of a percentage point in the last two weeks, resulting in potential savings of $72 per month on a $400,000 loan.
For those considering refinancing, now might be the perfect opportunity. Refinance applications surged by 15% in the week ending July 12, with many taking advantage of the lower rates. If you obtained a mortgage when rates were above 7.5% last fall, refinancing now could save you significantly. With rates currently averaging 6.67%, you could save $224 per month on a $400,000 loan compared to a 7.5% rate.
The current low rates are making this homebuying season especially attractive for buyers. The increased inventory of for-sale homes provides more options, although finding affordable homes can still be a challenge. Whether you’re looking to buy a new home or refinance your current one, now is a great time to explore your options and take advantage of the favorable rates.