May 10, 2023 (MLN): Mortgage rates in the U.S. dropped slightly from 6.5% to 6.48% last week after Federal Reserve chairman Jerome Powell hinted at a potential rate hike pause.

The drop wasn’t substantial, but it was enough to boost demand from current homeowners hoping to refinance their mortgages to lower rates.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased last week to 6.48% from 6.50% in the previous week.

Points declined to 0.61 from 0.63 (including the origination fee) for loans with a 20% down payment, according to the mortgage bankers association’s weekly survey. The rate was 5.53% for the same week one year ago, as reported by CNBC.     

Mortgage rates for all surveyed loan types decreased over the week.

Notably, the average contract interest rate for 30-year fixed-rate mortgages was 6.39% in the previous month.

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Posted on: 2023-05-10T16:44:36+05:00