Mortgage rates drop again amid weaker inflation and slowing job growth. The 30-year fixed-rate mortgage declined to 6.27% as of April 12, marking its fifth consecutive weekly drop
Mortgage rates have declined over the last several weeks, and it’s helping to lure buyers back into what started out as a slow spring home buying season. The recent rate declines are sparking optimism among economists and loan officers.
On conventional loans, some rates have dropped by over half a percent or more. That is helping to bring people back into the market. Now is the time to get into the market before rates come back down when there are even more buyers in the market.
The 30-year fixed rate mortgage rate dropped to 6.27% this week, the fifth straight week of declines, according to Freddie Mac. Rates are down one basis point from last week but are up from an average of 5% this time last year.
Optimal Blue’s 30-year fixed conforming mortgage rate was 6.33% as of April 12, up compared to 6.22% the previous Wednesday. The rate is calculated using actual locked rates with consumers across 42% of all mortgage transactions nationwide.
The Consumer Price Index (CPI) rose by 5% in March on a yearly basis, down from 6% in February — marking the slowest pace of price increases since May 2021. That same month, the unemployment rate dropped to 3.5%, and U.S. employers added 236,000 jobs, landing below economists’ expectations of 239,000 job gains.
These trends (inflation decelerating and mortgage rates declining), coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer.
Potential homebuyers also responded to lower rates last week, leading to an 8% jump in applications to buy a home.
