Mortgage rates fell for the fourth straight week and inched closer to a five handle, according to the latest survey from Freddie Mac.
- The 30-year fixed-rate mortgage averaged 6.09% for the week ending February 2nd, down four basis points from last week but is still 254 basis points higher than one year ago.
- The 15-year fixed-rate mortgage averaged 5.14% for the week ending February 2nd, down three basis points from last week but is still 237 basis points higher than one year ago.
Five Handle. Mortgage News Daily, which also tracks the 30-year fixed, had rates falling below 6% for the first time since early September. At the close of business on February 2nd MND had rates at 5.99%.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, the continued drop in rates has brought a lot more potential homeowners back to the market. “According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price.”