The average 30-year fixed mortgage rate falls below 7% for the first time since February.
According to U.S. News, the average 30-year mortgage rate has fallen about a quarter-point over the past several weeks, giving much-needed relief to buyers who are gearing up for the spring homebuying season. Still, borrowers are increasingly responsive to small rate fluctuations. Home sales rebounded in February when rates were about a half-point lower than they are now, so it’s likely that any further rate declines will bring a flurry of buyers back into the market.
Additionally, the inventory of homes for sale has been steadily decreasing since September, hitting a record low for the month of February, according to Zillow. That’s especially true for existing-home inventory, with homeowners reluctant to sell their homes and sacrifice a sub-3% mortgage rate.