US mortgage rates fall, hovering at lowest since early April

MORTGAGE rates in the US slipped for a fourth straight week.

The average for a 30-year, fixed loan was 6.86 per cent, the lowest level in about three months, Freddie Mac said on Thursday (Jun 27). Last week, the average was 6.87 per cent.

Despite the slight relief from the pullback in borrowing costs over the past month, rates are still hovering near 7 per cent. That pushed new home sales in May down to the slowest pace since November, and sent transactions of previously owned properties falling for a third straight month.

Investors are closely watching the Federal Reserve to gauge the path of potential rate cuts later this year. Earlier this week, Fed governor Michelle Bowman warned that there’s some upside risks to inflation and rates may need to remain elevated for some time.

“By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market,” Sam Khater, Freddie Mac’s chief economist, said. BLOOMBERG