30-year mortgage rates fall to a more than one-month low

Lower borrowing costs are offering some relief to home shoppers, though housing affordability remains tight as the market continues to stagnate.

The average rate on a 30-year fixed mortgage eased to 7.24% from 7.32% the previous week, according to Freddie Mac, its lowest reading in more than a month.

Even so, the cost of borrowing remains much higher than a year earlier, when the average was 6.17%.

The big picture: The average rate on 15-year fixed mortgages, a common choice for refinancing, slipped to 6.60% from 6.68% a week earlier. A year ago, it stood at 5.41%.

• Cheaper mortgage rates provide some relief for potential buyers, but elevated borrowing costs still curb purchasing power and keep home sales weak.
• Mortgage rates generally move with the 10-year Treasury yield, which has recently eased after reaching its highest level since 2002 earlier in the month.

State of play: Rates had been rising since February, pushed higher by stronger oil prices, inflation linked to the US war with Iran, and volatility in the bond market.

Go deeper: The 10-year Treasury yield stood at 4.98% on Thursday, down from a peak above 5.30% earlier in the month, but still above its pre-war level of 3.97%.

• The increase in mortgage rates since late February has added roughly $350 a month to the cost of financing a $400,000 loan.
• The US housing market has remained sluggish since 2022, as higher borrowing costs have left home sales near 30-year lows.